Do I have to pay someone else's mortage?

Question

My husband has a question:
He bought a house and put his minor daughter on the deed, so that when she turned 18 she would own the home.
Since that time, his relationship with her mother fell apart and the house is being sold. She turns 18 next month.

He was made to sign papers that gave her sole ownership of the property until it is sold (so they say, his fault for not reading them clearly).

The problem is: since he is no longer on the deed, and has no claim to the house, can they still force him to pay the mortgage, bills and insurance until the house is sold (which is not even on the market yet)?

David Beasley · Accepted Answer

The deed and the mortgage are two different things.

The deed tells the county who owns the property and who pays the taxes on it. This info is NOT reported to credit.

The mortgage being the debt instrument to finance the purchase of a house DOES appear on your credit. NOT paying it will ADVERSELY affect your financial health. Transunion, Equifax, Experian only know what the lender sends them to report ($ due each month, $ balance remaining, payment on time, etc). Your credit score is determined by what that lender tells the bureaus... that's it... it might not be fair, but that is the deal. 

It is possible to sue your family, or record a lien against the property (to muddy up title and tie up a sale). But, hopefully cooler heads will prevail and family bonds will be repaired in order to FIX that ownership situation!

Best of luck!

Big daddy · Answer

the mortgage part of this is yes, he is fully responsible for paying the mortgage note, him being in title or not being in title does not make a difference.  What I don't understand is who made him sign papers.  The very fact that he put a minor into title may very well make that deed null and void, even if grandma is legal guardian.  I ran into a situation like this a couple of years ago, and our title underwriter determined that the deed was null and void because of the minor in the "contract"  I wish I could remember the exact details of the situation I had but I would have your husband speak with legal counsel in your state to go over the situation

Anonym · Answer

So...he made a incomplete gift of the home to his daughter (and probably never did a gift tax form) and simultaneously used his good name to get a mortgage on it.  The mortgage is secured by the house.

The mortgage is *his* debt.  If he fails to pay the mortgage, the house goes into foreclosure.  The bank sells the house and if that pays off the loan, that's end of their involvement.  If the bank doesn't get fully paid, he may get a 1099-C for the difference.

He may also get sued by the daughter for the lost equity.

Barb G · Answer

He needs to go see a lawyer and have the lawyer request a copy of the title  and mortgage.  All documents pertaining to ownership, including that of a minor, can all be requested.

He needs to act fast.  It's worth the cost of the lawyer.

mscarriem · Answer

if the house in his daughter name she isnt legally allowed to sell the house as she is not 18 yet, also the deed is in her name but mortgage is in his so if he does not pay it, he will have bad marks on his credit,

Greshnab · Answer

it depends on who's name is on the loan.. if it is his name on the loan.. he is stuck for the payments or credit hit...

as far as does he legally have to make the payments that would depend on any divorce/settlement/support papers he had with her mother.

Do I have to pay someone else's mortage?

6 Antworten