Taking over title of home from girlfriend after it closes

[Tony20000]

What is the name of your state (only U.S. law)? CA

I am loaning my girlfriend money for the downpayment to purchase a home(I will not be on the mortgage). We agreed that we will do a promissory note after the close of escrow. She also suggested that she will quitclaim title to me after the close of escrow so I can rest assured that if we ever do break up or anything goes haywire that at least I have the house and can rent it out or sell it. I think it sounds like a good idea. The only issue that I thought about was the property taxes, which will come to me, but she said she will take care of it. And after the note is paid up I will transfer the house to her name.
Anything else that I may be missing? I feel sort of wet behind the ears so would definitely like all your opinions.
Thank
Tony

 

[Zigner]

What is the name of your state (only U.S. law)? CA

I am loaning my girlfriend money for the downpayment to purchase a home(I will not be on the mortgage). We agreed that we will do a promissory note after the close of escrow. She also suggested that she will quitclaim title to me after the close of escrow so I can rest assured that if we ever do break up or anything goes haywire that at least I have the house and can rent it out or sell it. I think it sounds like a good idea. The only issue that I thought about was the property taxes, which will come to me, but she said she will take care of it. And after the note is paid up I will transfer the house to her name.
Anything else that I may be missing? I feel sort of wet behind the ears so would definitely like all your opinions.
Thank
Tony

Are you suggesting that we give you advice on ways to further defraud the lender?

 

[justalayman]

you have a lot of problems in your plan, some of which could be criminal.


if this is a federally insured loan, you cannot loan her the money as you are. Since you plan on signing a promissory note after closing, I suspect you are already aware of that issue. Especially given your suggested time line, you might want to research a bit about fraud and how it would apply.

then, upon the execution of the quitclaim deed, what are you going to do about the mortgage since it likely includes a due on sale clause activated by transfer to a non-relative purchaser?

then you have tax issues with transferring it to you and then again back to her.



do you really want me to continue with how dumb of an idea this is?

 

[Zigner]

Yeah, what just said!

 

[tranquility]

Not only is this most likely mortgage fraud, but also it is the most extremely bad idea for the girlfriend in the history of girlfriends. She is so screwed here that anyone who made such a plan can not care for her in the least or is completely ignorant to all the issues involved.

I agree with the other posters. This is an illegal scheme. Even if it were not illegal, it would be a bad idea for all involved. While the OP makes out a bit as his credit will not be trashed as soon as the parties break up, it won't be as fun when he loses his down payment and credit when he realizes no one will get to deduct the mortgage interest and the expense is too great.

Bad OP. Bad boy. I'd get a rolled up newspaper now, but I'm not a hitter. But there are no Scooby snacks coming your way for a while.

 

[STEPHAN]

I would check with the lender first. I don't think they will approve this.

 

[LdiJ]

What is the name of your state (only U.S. law)? CA

I am loaning my girlfriend money for the downpayment to purchase a home(I will not be on the mortgage). We agreed that we will do a promissory note after the close of escrow. She also suggested that she will quitclaim title to me after the close of escrow so I can rest assured that if we ever do break up or anything goes haywire that at least I have the house and can rent it out or sell it. I think it sounds like a good idea. The only issue that I thought about was the property taxes, which will come to me, but she said she will take care of it. And after the note is paid up I will transfer the house to her name.
Anything else that I may be missing? I feel sort of wet behind the ears so would definitely like all your opinions.
Thank
Tony

The problem is, is that you cannot actually do most of that. If you don't disclose to the mortgage company that you are loaning her the money, not gifting it, then its mortgage fraud. If you do make the proper disclosures then they might not give her the mortgage. If she quit claims the home to you after taking out a mortgage on it then that invalidates the mortgage and they may foreclose on the home.

There are just all kinds of reasons why you cannot do all of that.

 

[STEPHAN]

A proper way to do this so you are both protected would be to buy the house together and do the necessary agreements what to do in case you break up.

 

[tranquility]

A proper way to do this so you are both protected would be to buy the house together and do the necessary agreements what to do in case you break up.

Ding, ding, ding, ding, ding! We have a winner. Although, even with an agreement there could still be huge legal problems.

Some might say the BEST answer is to get married before moving in together. I know it is old and fuddy duddy and not the way things are done today. It sure solves a lot of problems. It creates a lot too, don't get me wrong. It's just that if you're not going to commit on marriage, it might be wise to reconsider committing on the largest purchase you will make in your life.

 

[justalayman]

A proper way to do this so you are both protected would be to buy the house together and do the necessary agreements what to do in case you break up.

Ding, ding, ding, ding, ding! We have a winner. Although, even with an agreement there could still be huge legal problems.

Some might say the BEST answer is to get married before moving in together. I know it is old and fuddy duddy and not the way things are done today. It sure solves a lot of problems. It creates a lot too, don't get me wrong. It's just that if you're not going to commit on marriage, it might be wise to reconsider committing on the largest purchase you will make in your life.

shame on the both of you for even suggesting creating such a legal quagmire (giggity, giggity).

 

[Zigner]

...the largest purchase you will make in your life.

My airplane will cost more than my house.

 

[tranquility]

My airplane will cost more than my house.

I amend my statement to reflect some's reality.

 

[justalayman]

My airplane will cost more than my house.

apparently you do not have a large enough house.

 

[Zigner]

apparently you do not have a large enough house.

Excellent point.