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Voices Member,  in

I Cosigned on a family members home because they had bad credit. How long would it take to get your name of that house and does it affect your credit?

Asked by Voices Member, Wed Jun 30, 2010

I would like to purchase my own home but i still have a family members home in my name, they have made steady payment and now I am ready to move on. How do I go about doing so and are their any side effects...?

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The family member either has to refinance his/her mortgage, or sell the home. Otherwise, you will remain on the mortgage. And you're correct that being on that mortgage will make it more difficult for you to get a mortgage of your own on your own home.
1 vote Thank Flag Link Wed Jun 30, 2010
Don Tepper, Real Estate Pro in Fairfax, VA
Tahir, the only way to get off the mortgage is that the relatives refinance. If they are paying their mortgage on time their credit score has gone up. Remember FHA only requires 540 for a rate & term refinance. This show why it is so important to have your buyers get a preapproval before showing them homes. Canarsie is a great place to live. As a banker I can guide your potential home buyer and family on what they need to do.
Annette Levinson
0 votes Thank Flag Link Fri Jul 2, 2010
Hello, I have been doing real estate for several years now and I have come across excited buyers that want their own home and then later discover the buyer has another home in their name. It's unfortunate sometimes because you go out of your way to help someone else and when a great buyers market like this comes along you cannot buy a home for yourself.

But their a few exceptions to this because it depends on how much is owed on the mortgage you co-signed for, how much you earn, your total assets, down payment, credit, etc.

It is wise that you go to a mortgage broker to assess your situation, who knows you may need a co-signer yourself.

Good luck1
Web Reference: http://www.RhondaHolt.com
0 votes Thank Flag Link Fri Jul 2, 2010
Your best bet is to find a local lender to work with. Explain the situation to your loan officer and see what he/she recommends. If enough time has passed for your family member to re-establish their credit, they now may be able to apply for a new loan in their name only. Until that happens, you and the family member are both responsible for their mortgage. I hope that helps.

Warm regards,
Maggie Hawk, REALTOR
(386) 314-1149
Watson Realty Corp.
0 votes Thank Flag Link Wed Jun 30, 2010
Tahir, your on the loan. The only way you can get off it now is for that family member to "refi" without using you as a cosigner. Basically, by cosigning, you have told the bank that if that person(s) does not pay the loan payment(s), that you will. How long have they been in the home? If they have been in the home long enough, and have been making their payments on time, they may have improved their credit enough to go it alone. Also, the fact that you are a cosigner on the loan, may affect your own loan application. The interest rates are the lowest they have been in decades. Talk to your lender and your family member.....and see if they can make it on their own. Good luck, I hope all goes well for you.
0 votes Thank Flag Link Wed Jun 30, 2010
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