My mom keeps hinting that I should help her buy a house. Here's the situation: I live at home with my mom, brother and loser stepdad. My mom's credit isn't fabulous so she wants to have me apply for the loan and she and her husband would pay for it.
The catch is that he's a bit of a deadbeat, and my mom may eventually file for a divorce. I'm not worried about not making the mortgage payment. My mom and I could cover that on our own. If I take out a loan and put her on the deed, can he get half of the house if they divorce? What other things can go wrong here?Answer: Other than just about everything, you mean?What your stepfather could get depends on a number of factors, including how you structure this arrangement and what state you live in. In community property states, such as California, assets acquired during marriage generally are considered joint assets. In other states, "equitable-distribution" principles are used in divorce cases, and a judge could decide the house is fair game. Even if divorce weren't a factor in this equation, your mother's bad credit is. If she hasn't paid her bills in the recent past, what makes you think she'll keep her end of the deal now? Unless you can cover every mortgage payment entirely on your own, you shouldn't even consider this arrangement. You might not be able to pull it off, even if for some reason you decided to proceed. If you want a lender to consider only your credit history — and not your mother's — then typically only your income would be used to determine how much of a loan you can get. What's especially troublesome, though, is that your mother would bring up this scheme at all. She wants to use you and your good credit to pull off something she can't accomplish financially on her own. .
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