-
Does non-occupant co-borrower have rights to the property
If I get a co-borrow to sign on a mortgage loan but they sign a non-owner occupied will they still have access and rights to buy the home. If they chose to move in if I’m the primary resident? Can you co-sign a mortgage and not be on the deed? Does a co-borrower have rights to the property? Does a cosigner on a mortgage have ownership? Does a cosigner on a mortgage have to live in the house?
-
This discussion was modified 2 months, 2 weeks ago by
Sapna.
-
This discussion was modified 2 months, 2 weeks ago by
-
1 Reply
-
The functions performed by a co-borrower or a cosigner on a mortgage may change from one loan to another and from one property ownership structure to another. Here’s how it works:
Non-Owner Occupied Co-Borrower:
Access and Rights to the Property: A co-borrower signing a mortgage loan as a “non-owner-occupied” is generally an expectation that such a person will not live in the property in question. However, this is subject to whether they are also on the title (deed) to the building since, in most cases, such individuals have the right to dwell in the home.
Ownership: When a co-borrower is included on the deed, they have ownership rights and all accompanying rights, such as living in that property. When they are not on the deed, they do not have ownership and, therefore, cannot move in without the primary owner’s permission.
Can You Co-Sign A Mortgage And Not Be On The Deed?
Yes, There is nothing wrong with co-signing a mortgage without being in the deed. In this case, they will have to repay the loan but will not have any interest on the property. This means that they have no rights to the property itself.
What Rights Are Exercised by a Co-Borrower in the Property?
Depends on the Deed: A co-borrower has rights to the property only if they are also on the deed. If they are on the deed, they are co-owners and share ownership rights, which include the right to live in or sell the property.
If Not on the Deed:
They do not have any legal claim to the property and have no rights to live in it or make decisions about it regarding the property.
Does a Cosigner on a Mortgage Have Ownership as Such? No: A cosigner is not on the deed and has no ownership rights. They are just cosigners. While such individuals are liable for the debt, as cosigners, they have no ownership rights to the premises.
Does a Cosigner on a Mortgage Have to Live in the House? No: A cosigner does not have to live in the house. Their function is to ensure the lender by expanding his/her risk through subscribing to the loan if necessary. They don’t have to hold the premises.
Co-Borrower on the Deed: Has ownership rights and the right to live on the property.
Co-Borrower Not on the Deed: This person has no ownership and no rights on the property except permission to reside therein if granted.
Cosigner Not on the Deed: This person has no ownership and is not obliged to live in the property.
Cosigner on the Deed: This person has rights over the property and may occupy it.
It is necessary to delineate the responsibilities and comprehend the effects even before signing any home mortgage with a co-borrower or a cosigner. It is also helpful to seek the advice of a real estate attorney regarding the transactions to ensure that all the rights and obligations are adhered to.