piggy back credit

[crapandgarbage]

I have a friend buying a need house within the next few weeks. She is willing to allow me to be added not as a co owner but use the mortgage to build credit. is that possible?

[Anonymous]

Sure it's possible, but consider the downside: if your name is on the mortgage, you are on the hook if, for whatever reason, she is unable to make the payments. Imagine having no stake or rights in the property, but being liable if anything goes wrong!

No way no how would I expose myself to hundreds of thousands of dollars in potential liability (not to mention a big fat black mark on my credit report if the "best laid plans of mice and men" went awry) while gaining no assets in return.

Message Edited by TheNewWorldMan on 12-27-2007 12:48 AM

[Anonymous]

In addition to the downsides that TNWM pointed out ...

Imagine you are on the hook for the mortgage and nothing goes wrong (e.g., she doesn't make a single late payment).

Fast forward to the time when YOU want to buy a house.  Her lender won't take you off her mortgage (unless she has sufficient income and credit to carry it herself), and your potential lender won't let you take on a second mortgage.

[marty56]

When DW got divorced, the Ex had to refinace to get her name off the loan.

Don't do it.