How do you give part of your home equity to someone else?
Posted in Renting & Real Estate on 01/19/2009 04:58 pm by admin
rainfingers asked:
A relative with poor credit wants to give me a portion of her home equity, so that I can use my good credit to get a loan in my name against that equity. Is that possible? How do you do it?
BUFORD
A relative with poor credit wants to give me a portion of her home equity, so that I can use my good credit to get a loan in my name against that equity. Is that possible? How do you do it?
BUFORD
01/20/2009 at 3:54 am
SANDY
Then you become a co-signer and fully responsible for the loan.
I wouldn’t do it.
01/23/2009 at 6:44 am
SALVATORE
To actually “get” the equity, they would have to deed over a percentage of the house – which I’m sure the mortgage holder would prevent.
Otherwise the most used method to accomplish what you want is be the Co-signer on a 2nd mortgage/home equity loan.
Risky stuff for you – just remember the bank won’t loan to them so why would you expect them to be able to pay the 2nd?