Quit Claim Deed
by Primary Borrower in USA
Ask Kate: Will a quit claim deed help to save the credit score of a co-signer? My mother co-signed on my mortgage several years back at the suggestion of my mortgage broker. Now we are having issues with our house payment and trying to get a loan modification.
If we filed a quit claim deed, would the delinquent payments quit showing up on her credit report?
Kate Answers: Will a quit claim deed save a co-signer's credit score?
I'm sure you know from experience now that co-signing for a mortgage carries risk. Co-signers are equally responsible for mortgage payments. By signing loan documents, co-signers accept full responsibility for timely payments.
Quit claim deeds only transfer ownership of the property. Down the road, if primary borrowers want co-signers removed from the mortgage, a re-qualification process is normally required. Most homeowners end up refinancing.
Monitor Your Credit
It is important for co-signers, and anyone for that matter, to monitor their credit. Because the primary borrower is typically the one to make the payments, co-signers are often out of the loop when financial issues arise. By the time problems are discovered, damage to credit is in full swing.
Keeping abreast of changes to your credit history is vitally important. Follow the links below for more information found on my website regarding your credit.
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