We are going to lease a home, they want us to sign a quitclaim to be…

Credit and mortgage advice Forums Home Mortgage We are going to lease a home, they want us to sign a quitclaim to be…

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    • #203756
      Anonymous
      Inactive

      …listed on the title and pay the mortgage. We want to know if this is legitimate, because they tell us that by being on the title they will refinance the house in our names and give us full title, next year. We basically have low credit scores and really wanted the house before someone else bought it so an investor bought the house for us. We are just not sure how much ownership the quitclaim really gives us, like does it keep them from selling the house or taking out any further loans or adding someone else to the title? Please advise.



    • #260898
      Anonymous
      Inactive

      Talk to a Title company or bank the can give you exact answer for free

    • #269304

      This is how I see your situation working…First, ownership of the home and responsibility for the mortgage are two separate things. (I am setting aside the fact that the lender technically owns the home for the sake of argument.)
      As far as the mortgage is concerned, both you and the investor are listed as equally responsible on the mortgage for the home. The investor is essentially acting as a cosigner using their good credit to compensate for yours in getting the deal approved. Next, as far as ownership is concerned, the investor could quitclaim the deed to you making you the sole homeowner.
      This does not remove the investor from responsibility for the mortgage but establishes you as the sole owner of the home. They cannot sell the house because it is no longer theirs. They cannot add anyone else to the title since they have quitclaimed the title to you.
      Now they will not be able to refinance the home either since to do this they would need to show the new lender that they still have title to the home, which they don’t because they quitclaimed it to you.
      Only you can refinance the home which you may or may not be able to do given your poor credit. After a period of time of making mortgage payments your credit may improve to the point where you might qualify for your own mortgage. Once approved, you would own the home and have sole responsibility for the mortgage.
      So it sounds like they are helping you become homeowners but only you know what it is costing you or what the investors are making in your deal.

    • #428748
      Anonymous
      Inactive

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