If my father in-law cosign for me to get a mortgage, does that means he will also become part owner? will he on the loan. What if I decide to sell the house or do repair do i have to get his permission.
thanks
Yes, he would be part owner.
You can not sell the house without his consent. For repairs, it depends on your relationship with him.
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Posted on: 13-07-12 13:50:30
Not in all cases. There is a special co-sign option where he would be responsible for mortgage but not an owner. Was discussing this with Pramod Chopra coincidently few days ago. He can guide you further.
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Quote:
Originally posted by G13
Not in all cases. There is a special co-sign option where he would be responsible for mortgage but not an owner. Was discussing this with Pramod Chopra coincidently few days ago. He can guide you further.
I want to clarify some thing here. There is a difference between a co-signor and a Guarantor but these two terms generally get mixed up.
If a person co-signs to help some one secure a mortgage, the banks would like that person to go on title as well and the co-signor would have to sign all the documents and would become a co-owner as well. He is registered on the title and is accountable for all the payments as well though it is understood that the borrowers would make mortgage payments. However, as a co-signor would be registered on title, he practically becomes a co-owner and yes, without his explicit permission the house can not be sold.
While on the other hand, a guarantor personally would guarantee all the payments if the borrowers default on mortgage but does not have any say in title.
Please read here http://www.bankrate.com/can/news/mortgages/20050608a1can.asp?prodtype=mtg for more clarity.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
