Does the cosigner need to be on the title or deed to the house for them to help you get a loan or mortgage?
2007-06-24 03:19:03 · 4 answers · asked by misymagicg 2 in Business & Finance ➔ Renting & Real Estate
The first answer is correct. No, the co-signor/co-borrower could be on the mortgage note but not the title. Yes they would be extremely foolish to do this unless they had very good reason, which to be honest I can not think of any off of the top of my head.
2007-06-24 03:47:33 · answer #1 · answered by dzwreck 4 · 0⤊ 0⤋
I will expound even further than the first two posters did. NO, they do not have to be on the title, but they will be on the mortgage note and hence bear full financial responsibility for the contract if you default. Hence, I would never co-sign for anyone in such a situation without having equal title to the property. What you need to do in this situation is have an attorney draw up yet another legal agreement, detailing legally what happens in the event of a default or NON-default. In other words, this agreement should state that, upon sale of the property or other retiring of the co-signer's liability, that you will get full unfettered ownership by signing of a quit claim deed by your co-signer. As well, the contract should clearly delineate what the co-signer gets if you do default and the co-signer has to take over payments, sell the property, and so forth.
2007-06-24 16:46:38 · answer #2 · answered by acermill 7 · 1⤊ 0⤋
No, but they would be foolish to cosign a loan with no ability to sell the home if you stopped paying.
Think about it from the cosigners point of view they would have a huge debt and no asset. If you couldn't pay for whatever reason they would have to buy you the house or ruin their credit and if they wanted to get any loans couldn't because they used up their available credit.
2007-06-24 10:31:20 · answer #3 · answered by shipwreck 7 · 0⤊ 0⤋
Generally no. FHA never. Lenders want the person borrowing the money to be putting up collateral, the house. They want owner occupancy. In addition, most lenders will lend only 70-8-% of the amount needed because it would not be the borrower's primary residence. However, in a 2nd mortgage, I have seen a non occupant co-signer, but in today's lending climate, this would be rare.
2007-06-24 10:59:26 · answer #4 · answered by gary_mattox@sbcglobal.net 1 · 0⤊ 0⤋