Home Buying in 90755>Question Details

Susan Ross, Home Buyer in 90404

Can I be on the title if I'm not on the loan? I am providing the downpayment and covering all expenses, but can't qualify due to identity

Asked by Susan Ross, 90404 Tue Nov 8, 2011

theft. My parents will qualify for the loan, using their good credit. I am putting 20% down, paying all inspection and closing costs, etc. My parents will live in the home and cover monthly mortgage and HOA fees (in place of rent that they would pay elsewhere).

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Jim Simms’ answer
It depends on the type of loan; sounds like you are describing a conventional loan product. We would allow this in our shop. The earlier suggestions about a quit claim deed after the fact could violate the due on sale clause, which means the lender could call the entire balance due and payable. Does that happen? Yes, and although it does not happen very often why stick your neck in that noose when it isn’t necessary? Never tell a lender anything that isn’t on the up and up.

You may need the loan officer’s help documenting the funds to close. That is the only sticky point I see in what you described. They may require documenting a gift to your parents of the down payment and closing cost which is okay based on your description. Your parents cannot borrow the funds from you but they need to show they have access to the money. Hope this is helpful,
1 vote Thank Flag Link Wed Nov 9, 2011
You can be on title via a Quit claim deed to have your name added to title. Once the transaction closes you can draft a Quit Claim deed and add your name to tile. Hope this helps.

Oscar R. Barajas
Broker Associate
Atlantic and Pacific Real Estate
(714) Top-REO-1
2 votes Thank Flag Link Tue Nov 8, 2011
UPDATE: In order not to trigger the "DUE ON SALE CLAUSE" our lender has given us permission to put the spouse (with lower credit score) on Title but not on the Loan at closing. Check with your lender as every institution has its rules and regs,
0 votes Thank Flag Link Sat Aug 29, 2015
I'm in this very situation right now. My lender from Platinum Home Mortgage Corp advised me AGAINST adding the spouse on title afterwards. She said that it could trigger the "due on sale" and they could call the entire loan due and payable. Instead, the option we are going to attempt is to get the spouse added to the title at closing but not the loan, with the lenders permission.
0 votes Thank Flag Link Sat Aug 29, 2015
No. You can "NOT" because you did not qualify for the loan. Second, you can not do a quit-claim after close. The bank has 180 days waiting period to "season" the loan before the bank sell to somebody else and will check title. Once it is transferred, it will trigger "Due on Transfer Clause" and can call the entire loan DUE and payable. Second, you can not add your name to title either immediatley afer the close. It will trigger the same action. SO no Quit Claim and no add name to house title. Then what you do?

Do a Land Trust on the Property, naming you as the Trustee for the House and Your Parent as the Beneficiary of the Property. This will qualify for the Bank's requirement that

The original borrow is the beneficiary and "equity title" of the property and you has the power of control as the "trustee and holds legal title" which satisfied your requirement.

The Title of the Trust shall be

Susan Ross, Trustee of the Ross Trust, dated 11/8/2014

As long as the beneficiary is your parents there will be NO TRANSFER TAX
other than county filing fee of $25 dollars.

Just Google "Land Trust or Land Trust Title" you can do it yourself if
you hire others to set up it be around $1,500 or if you do it on Rocketlawyer.com
it will be $19.00 per month and you can cancel after 3 months.

As long as the beneficiary is your parents the title insurance will still
cover them under the landtrust.

Once you add your name to the title like Quit Claim method or just add your name to it, there is no title insurance to cover YOU if title issue involved.

However, anything you do with the property must have their permission and they know about it with "consent" that is being a good servant and as in this case "Trustee" of the Trust.

Upon sale, the money will be PAID to you and all rent is PAID to you and
you can distribute how and which ever they like as long as they DO NOT OBJECT.

Good Luck.
f. liu, trustee & co.
0 votes Thank Flag Link Fri Nov 14, 2014
You can do the "Trust" immediately follow the closing. However, do not VOLUNTEER and tell the bank or tell the loan officer "oh we are buying under a trust" the loan will be declined. This Trust is a matter of Personal Privacy and for Avoiding Probate purpose (another benefit). However, if the lender discover the title transfer to Trust, you can show them a notarized copy of the trust showing the Beneficiary of the Trust is the "borrower" and has equitable title. They will be satisfied.
Flag Fri Nov 14, 2014
You can be added to the title immediately after the transaction closes. Its done all of the time.

Best of luck,

Alex Montelongo/Broker
Coldwell Banker Star Realty
562-810-7387 Cell
BRE Lic #01456982
0 votes Thank Flag Link Fri Nov 14, 2014
You can be added to the title immediately after the transaction closes. Its done all of the time.

Best of luck,

Alex Montelongo/Broker
Coldwell Banker Star Realty
562-810-7387 Cell
BRE Lic #01456982
0 votes Thank Flag Link Fri Nov 14, 2014
You can not be added to title until after the loan closes.
0 votes Thank Flag Link Wed Nov 5, 2014
Yes, you can be added to the title and not the loan, its called a deed transfer. You should always ask the lender for consent to amend the title before actually doing so. The lender may not find out about the deed transfer as soon as it happens but down the road if you decide to refinance the note they will. The mortgage provider may essentially prevent a deed transfer by requiring you to immediately repay the loan if they find out about the transfer.
0 votes Thank Flag Link Wed Nov 5, 2014
My brother and his wife did the exact same thing, but they lived in the house. Now the person who's name the loan was in is filing for bankruptcy. What can they do to keep their home, as they paid for everything. The title has their names, but the loan doesn't. Any asvise would be greatly appreciated.
0 votes Thank Flag Link Fri Oct 31, 2014
Well here is the solution: before and after for bk.
BEFORE: best option. Have your brother and his wife qualify for the loan and agreed on a price of purchase. If he house is worthless than what is owed then you need to get a real estate agent to help you do a Short Sale. If you can't qualify then you can still buy the house under "Subject To or Land Contract or a Lease Option with Deposit".

After Filing of BK
All hell break lose. you CAN't do anything with the house because the house is under the Chapter 7 Bankruptcy Trustee's control and is in charge of the house (if there is equity), if there is no eq then the landlord's lender will file "motion to lift automatic stay of the bk" and get the house out of bk and file "foreclosure action" to sell the house via foreclosure...you still then still have time to make arrangement with the owner to buy the house however, it will be very difficult by that time...the house may in this case need a short sale (cus owner owes too much).
Flag Fri Nov 14, 2014
you should be able to after close of escrow..best of luck.
0 votes Thank Flag Link Wed May 8, 2013
Hello Susan,

Short Answer, yes you can be on title if you are not on the loan.

It sounds like your parents will be living in the home not you. Are you helping them by providing the down payment and closing cost, or are they helping you buy a home?

Kawain Payne, Realtor
0 votes Thank Flag Link Wed Jun 13, 2012
Not to be overly technical, but you cannot add someone by a quit claim. A quit claim is just what it sounds like: you are “quitting your claim.” This is used to effectively tell the world that despite any appearances to the contrary you do not own this property. This document is used when a spouse is NOT buying a home to clear up any community property issues. (Interspousal deeds are more commonly used here, but quits are sometimes still used.) They are also used in estate situations where multiple heirs may have an interest in a property.

Adding someone required a grant deed of some type. When I got married (21 years ago this month) I deeded my home as follows (paraphrased somewhat): Bob, who acquired this home as a single guy deeds to Mary and Bob, as a married couple.

The issue that screams out in your question is not so much can you, (you can easily do this – just have the titled owners grant the property similar to what I described above,) but should you? I would make sure that whatever identity issues you have are absolutely taken care of before you get added to the title of a home. The last thing you want to do is be added to title and have a lien placed on the home.
Web Reference: http://www.SacRELender.com
0 votes Thank Flag Link Tue Jun 12, 2012
The short answer is "yes". Your parents lender may not allow it at the close of escrow, but in CA anyone can 'quit claim' their property to anyone else - The loan, obviously, is still owed by your parents -
0 votes Thank Flag Link Tue Jun 12, 2012
Hello Susan,
Probably have all the answer you can handle.
Almost all the answer is right.
You can add your name to title.
Either before closing or after you close.
Your best rsource is the Title comapny
or Escrow company once you start the deal.
It's a win win situation for you and your
parents. You own a place, have your parents
a place they can call their own and share the
tax break.
Good Luck Susan.

Roberto Gosim
Century 21 Action!
2679 Long Beach, CA 90806
CA DRE Lic#: 01362188
Cell: (310) 597-5686
0 votes Thank Flag Link Tue Jun 12, 2012
Yes you can. If the lender is not willing to do it during the escrow process, you can always be added to title after escrow closes. I worked with a newly wed couple a few years ago. The wife did not have strong credit but the husband did. We had the loan in the husband's name only, but both were on title at the close of escrow.

Best of luck to you!!!

Kawain Payne, Realtor
0 votes Thank Flag Link Fri Feb 10, 2012
I do mortgages like that all of the time.
0 votes Thank Flag Link Thu Nov 17, 2011
So glad you asked this question Susan. I am currently working with two brothers on a property that we are scheduled to close next week. The lender declined one brother after we had been under contract for a few weeks because of his lack of history on recurring payments, i.e. electric bills, water, cell phone. I checked with the escrow officer at Talbrook Escrow in Brea who said it is up to the lender to approve or disapprove. Luckily in our case B of A is allowing both brothers to be vested on title.
Web Reference: http://FollowMeToHome.com
0 votes Thank Flag Link Wed Nov 9, 2011
Dpends on your state. Here you can be on the deed and have nothing to do with the loan at all. (Maryland)
0 votes Thank Flag Link Wed Nov 9, 2011
Hi Susan, you'll need to check with your lender to see if they'll allow you to be on the escrow paperwork and deed when you're not on the loan. If they won't, you can certainly be added after escrow closes, either through a quit claim deed or grant deed.
Web Reference: http://www.ShowMeHome.com
0 votes Thank Flag Link Wed Nov 9, 2011

It depends on the lender, but to be put on title before closing escrow you need lender permission. After the fact a title company can handle this for a modest fee, but you should check your loan docs to see if permission is needed after the fact. Generally it isn't.

Best Regards,

Lance King/Owner-Managing Broker
DRE# 01384425
0 votes Thank Flag Link Wed Nov 9, 2011
Hi Susan,
Title and Loan are two seperate things as you have surely figured out. You should simply put the 20% down payment plus any additionals, in at closing as "gift funds". Any lender you work with should be able to to do this and will guide you in how the process works. Its easy to do and available on most loan programs these days. if you would like a loan quote let me know, I can help!

0 votes Thank Flag Link Wed Nov 9, 2011
Susan in most cases you can add your name on the deed after the initial closing. You may need to check the mortgage docs to make sure. Using the same lawyer or title company that does your closing may be easier and less expensive in some cases to add your name to the deed.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Wed Nov 9, 2011
Hi Susan, yes you can add your name onto title after escrow closes. My advice is to consult a competent real estate attorney to answer your questions and to help you with it. Most title companies would say that a grant deed is better document to use than a quit claim deed and make sure it's signed and notarized prior to escrow closing in case your parents or whoever is buying the property has a change of heart. Your escrow company may draw the form for you for a fee during escrow. If you'd like a referral to a real estate attorney I'd be happy to give you one. Good luck, John
0 votes Thank Flag Link Wed Nov 9, 2011
Yes you can! After the closing, in my area you can file and be on the deed
0 votes Thank Flag Link Tue Nov 8, 2011
You may be able to be have a Quit Claim to put you on title after the loan closes, Susan. Are you buying in a senior community? You are a little vague as to why you are not going on title or it just did not print clearly on Trulia?
Heather Raphael...Main Street Realtors, Long Beach,CA 90803...thank you
0 votes Thank Flag Link Tue Nov 8, 2011
Yes, ultimately you CAN be on the title, just not AT the time of closing.

You're going to "pay back' your parents who are going to be the ones qualifying for the loan & when the deal closes they'll be the ones on title.

But, within a week after you close you can file a Quitclaim deed to be added to the title, you & your parents can work out whatever equity position you want & there you go. Just ask the escrow officer you're working with about getting this done.

If you have any other questions, just shoot me an email directly, I don't look back here on Trulia for answers posted after mine.

562-430-3053 c
Realtor Since 1996
Main Street Realtors
0 votes Thank Flag Link Tue Nov 8, 2011

More than likely you will not be able to. You could write up a seperate contract and make your parents sign that. I could refer you to a great lender I deal with on a regular basis. However, if you would like my help, I am an honest and down to earth realtor.

As a bonus, I will credit you up to 1% of the home price back through escrow on any home purchase of over 125,000! This could save you thousands!
Call or text me anytime...

Erik Bottema, Realtor http://www.SoCalCashbackRealty.com
Meridian Capital Real Estate
DRE #01895909, Member SRAR, NAR, CAR

Cell: (818) 426-1700
email: edbottema@gmail.com
PO Box 311, La Canada, CA 91012
0 votes Thank Flag Link Tue Nov 8, 2011
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