2007-07-20 09:41:52 · 7 answers · asked by micg04 1 in Politics & Government ➔ Law & Ethics
Okay, lesson one:
Generally speaking:
A Deed is the document that passes ownership of real property.
A Note is a promise to pay money.
A Mortgage is a document that gives a holder of a Note an interest in real property to secure payment.
Now, the question is, what did you put your name on? If it is on a Mortgage of a piece of property you don't own, it's irrelevant to you. I suspect that isn't what you did, because odds are you aren't on the Deed to your parents' house.
However, if you are on the Deed, they might have gotten your signature on the Mortgage, without being on the Note. If you didn't sign the note, they can foreclose on your interest in the house, but cannot hold you personally liable for a deficiency.
The Note, on the other hand, you might have signed without an interest in the house, or being on the mortgage. That's a promise to pay no matter what, so if they don't make the mortgage payments, you may be required to make the Note payments, which are less than the mortgage payments. You may also be held responsible after Foreclosure, if it comes to that.
I think you need to take copies of what you signed to an attorney and find out what you agreed to, because it looks to me like you don't know what you signed.
2007-07-20 09:51:56 · answer #1 · answered by open4one 7 · 1⤊ 2⤋
Assuming that the mortgage lender allowed this, you are now considered the co-borrower on the mortgage. You are liable for every payment in the same manner as your parents. If they do not pay and the real estate is foreclosed, it will go on your credit report just as if you had signed the initial mortgage note.
For your own security I would suggest that you supervise your parents mortgage payments to make sure that they are not incurring any late charges (which would also effect your credit report). If your parents will allow it you may want to consider becoming an authorized signer on their checking account and you take over making mortgage payments from their account.
2007-07-20 09:53:10 · answer #2 · answered by CatLaw 6 · 0⤊ 0⤋
If I were you I would set aside extra money because if they couldn't pay when it was in their name then they can miss payments now that its in your name because you are responsible for it. If the payments are not made you will have to cough up the money, not to mention if noone makes the payments it will effect your future so much.
You wont be able to take out a loan or buy nothing on credit, I hope this doesnt happen because when your ready to start your life with a family there will be so much you CANT do to set up a home and car and finances for your little ones. Why did you put it in your name? Are your parents elder and sick?
2007-07-20 09:53:47 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You will be as responsible as they are. If they default you will have to find the money. This will also effect your credit rating in the future should they default in the payments. A nice gesture, if not that wise..after all they are your parents.
2007-07-20 10:09:24 · answer #4 · answered by Dr Paul D 5 · 0⤊ 0⤋
You'll owe the money, and if the house is forclosed upon and the amount still owing exceeds the amount of the existing loan, you'll have to pay the difference.
2007-07-20 09:50:54 · answer #5 · answered by webned 6 · 1⤊ 0⤋
If they don't pay, you have to. If you don't pay, the creditor can go after you and your assets, as well as theirs, and anything on that order will reflect on your credit report, as well as on theirs. If they don't pay, you'd better be prepared to do so.
2007-07-20 09:48:10 · answer #6 · answered by joustingwindmills 3 · 0⤊ 0⤋
If the mortgage is in your name, you are financially responsible for payment of the mortgage.
2007-07-20 09:45:10 · answer #7 · answered by Anonymous · 2⤊ 1⤋
if they do not pay it will show up on your credit report as a bad mark.
2007-07-20 09:50:15 · answer #8 · answered by Lori B 6 · 0⤊ 0⤋