What are the risks of having mortgage under my name while not being on title?

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A family member asked me to refinance their mortgage under my name 3 years ago since they had a bankruptcy and were unable to qualify for any loans. The title was changed so that I was added on it. I recently checked and saw that they have removed me from the title. I asked them to refinance it out of my name but they said their credit is still too poor and they can’t qualify. What happens if I remain on the loan and not the title? This person has also lost their job so I am scared if they miss any payments. If God forbid something happens to them would I be first in line to at least get the house considering both the first and 2nd mortgages are under my name? I’m so frustrated, don’t want either loan under my name (for $ 820,000).
Mark M I don’t understand why you say they messed up and I shouldn’t be on the title?? Also the bank is not on title of course, only the family member is (why would they gift their property to a bank and put them on the title?) It was me and the family and now the public records show I am no longer on it. I am wondering if they snuck in the paper to remove me to sign when I was signing the loan documents.

  1. Reply
    May 17, 2011 at 3:35 am

    I don’t know how they “removed” you from the title, are you sure you weren’t looking at the old title? The bank obviously would think you own the house. It may take you some time to realize that they are not paying the bill especially if the mail goes to their address. You should immediately contact a real estate attorney for help in this matter, state laws vary and this is quite a conudrum.

  2. Reply
    Mark M
    May 17, 2011 at 4:18 am

    Some thing is dodgy here. You can add people to a title, but removing them is tricky. If they removed you from the title, technically that is fraud. The question is, are the banks listed as lien holders?

    If the banks are, then you are ok. Still, if they default on the loan, the bank will foreclose, sell the house for what it can get, and come after you for the difference. Since they took you off the title illegally, you can come after them, and so will the bank.

    If your family members had left you on the title, then they could have jingle mailed the keys to the bank, and the foreclose would not have even been on their credit report. Now they messed up, it is a good thing to you, because they are now on the hook. Remind them of this fact some time. They took you off the title, you don’t want to be back.

  3. Reply
    Elizabeth A
    May 17, 2011 at 5:02 am

    Nobody can remove you from the title unless you signed a quit claim deed. I am sure you did and you did not know about it. Your family put you in the title so you can be qualify for the loan and take you out the title because they did not trust you. They have tricked you to sign a quit claim deed while you sign for the loan because so many papers work that you did not pay attention. Let pray that your family can pay for the mortgage or you will be responsible for the loan or you can kiss your credit goodbye for ten years. The bad thing about your situation is you own the Mortgage but you don’t own the house. If they don’t pay the mortgage and you pay for them you still not own the house.
    You must hire a real estate attorney as soon as possible and member to get the loan officer as well.

  4. Reply
    May 17, 2011 at 5:32 am

    You need to consult an attorney asap. The bank will come after you if they default on the loan. I seriously can’t imagine why you would ever have done this. That being said, call an attorney

  5. Reply
    Doctor Deth
    May 17, 2011 at 6:17 am

    how much money do you make a year? $ 300,000? that is what would be required to be able to afford a mortgage that large. why did you ever co-sign for a $ 800,000 mortgage?? is your IQ 75?

    shouldn’t the fact they already had a bankruptcy have rung huge loud bells in your ears saying RUN AWAY!?!?!

    they should have gotten out of the house back then if they couldn’t afford to refinance

    No one in their right mind should be buying ANY house if they can’t afford it themselves.

    YOU WILL be getting stuck with the payments any time now since one of the people lost their job and soon they won’t be able to pay it and it is probably worth less than they bought it for.
    you should have thought about all that possibility before risking your entire financial future by co-signing

    You are are stuck with that loan in your name until they sell it or pay it off and then you will have nothing to show for it since they took your name off the deed – I would take them to court and make them put it back on

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