my mom and dad are re-mortgaging their house. they told the bank all about their credit history, and they are ok with that. but they also told them that i live there, and my credit history sucks, because i've just gone through a divorce (my husband used to spend tons) and so i have judgements and things against me and my husband. will this affect my mom and dad's remortgage?? I hope not, it's got me really worried.
2006-11-08 09:53:05 · 7 answers · asked by Anonymous in Business & Finance ➔ Credit
i am on the mortgage as someone who lives there, but not a co-signer or anything.
2006-11-08 10:05:23 · update #1
It shouldn't if you are not on title to the property and you are not applying as a co-signer or guarantor.
2006-11-08 09:55:14 · answer #1 · answered by Ron H 3 · 1⤊ 0⤋
You ask quite a bit in a small question for this venue, but if you have a judgment against you and you are on title to the house (even if your folks gave you the interest just as a "poor man's estate planning gift" you have a problem on the title. It very well might affect their refinancing their home. However, you have to determine exactly how title on the home is held. If they didn't actually transfer an interest you by deed or quitclaim deed, then you aren't really on title. You would NOT be on the mortgage anyway, unless they used you as a co-signer.
In the normal situation, the mortgage company will just have you sign the mortgage on the property in the refinance. They would require all parties who have an interest in the property to do so. That just means they are agreeing that the property can be used as security for the loan. If there is no judgement against you, then this is all you have to do. They might also ask your parents to deed you off and then back on (by having you sign a quitclaim deed back to your parents).
However, if you HAVE a judgment against you AND you have a property interest in the house, your parents might be able to handle it by legal means to reflect that it's a homestead interest. No outside judgment can affect a homestead in most states (by that I mean a judgement NOT for a loan secured by the property).
To be honest, you need to seek legal advice in your jurisdiction to handle "this can of worms". At least they can determine the true situation which none of us can on this board.
2006-11-08 21:04:13 · answer #2 · answered by MJ 4 · 0⤊ 0⤋
Your credit will not effect your parents refinancing. Now as far as the judgements on your credit history and other derogatories what are you going to do about it. My recommendation is that since you don't own a home you should declare bankruptcy. I usually don't predicate this but it seems like that would be the best for you. Seek out a low-cost bankruptcy option through places like Legal 4 Less. It would give you fresh new outlook on life and you can restart building your credit over again. A chapter 7 is your best option.
2006-11-08 18:21:59 · answer #3 · answered by steve s 3 · 1⤊ 0⤋
If your name was on the title, they would be concerned about a possible lien against your interest in the home.
I want to know what you mean by being 'on the mortgage as someone who lives there'. There is no place for that information on my mortgage.
2006-11-08 18:51:30 · answer #4 · answered by STEVEN F 7 · 0⤊ 0⤋
No...not unless you are on the application as well. The fact that you live there means nothing unless you are applying for credit or are on title now.
I write a blog on the various reasons credit can be affected and ways to raise scores quickly. Check it out.
2006-11-08 17:58:26 · answer #5 · answered by Anonymous · 1⤊ 0⤋
No,not at all my dear.My stepdaughter and her husband live with us now,and they had very bad credit.Good Luck.
2006-11-08 18:14:21 · answer #6 · answered by colorado 3 · 0⤊ 0⤋
NO not unless you are co-signee
2006-11-08 18:15:52 · answer #7 · answered by I_hate_Debtfreedomcanada 1 · 0⤊ 0⤋