QUESTION
Joint tenant (JTWROS) on mortgage, but not on note. Any liable?
Asked on Aug 17th, 2016 on Foreclosures - New York
More details to this question:
Father buys a home free and clear, puts (8 year old) son as joint tenant. Father signs (8 year old) sons name on a new mortgage. Only the father signs the note on the new mortgage. 1. Is the son liable for the debt? 2. Is the son's credit affected by the debt? 3. If the home is being foreclosed due to default, but the son pays the mortgage in full, will the delinquent history affect the son's ability to refinance or access the equity in the home?
1 ANSWER
1 Award
An 8 year old cannot own property or sign a mortgage. That was bank fraud. The son's credit is not effected by the debt since any reporting of this debt against the son is a fraud. It is such a mess, that before the son pays anything ( I assume he is now majority aged), a title search needs to be done to make sure that the property is owned correctly. If the father is still alive, he should sell the property to the son for the amount of the mortgage balance, and the son should take a regular mortgage to finance the deal.
Answered on Aug 20th, 2016 at 6:20 AM