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Not on note but responsible for taxes and insurance?

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airedna3441
New Member

Not on note but responsible for taxes and insurance?

HI everybody,

 Somebody answer this if at all possible please, we have been pre approved for an FHA loan of 89900, so far credit has been ok, but our income is a little low, just barely getting us by with our debt to income ratio, and the underwriter is giving us some hiccups in the process..

  This is the problem, back in 1998 I bought a house with my mother and was on the note and deed, fast forward to 2006 and we refinanced the mortgage with my mother only on the note ( I had ovarian cancer and wasn't working re financed to get cash out to pay for meds) so I was taken off the note but left on the deed. The hiccup in the process is now that the underwriter is stating I'm responsible for the taxes and insurance on the other house but not the payment, which puts us over the debt to income ratio needed to close the loan.

  By what I've read legally I am not responsible for the payment of  the house because I'm not on the note ( although I have always made all rent payments to my mom on time and have given them proof) But why is the underwriter giving us such a hard time about the taxes and insurance? Anybody else have this problem? Our loan guy said he spoke with his rep from Michigan Mutual who reassured him this shouldn't be a problem but so far it looks like we're our loan guy is going to go over her head to her boss, which will probably totally piss her off, in turn making me be on pins and needles that its not going to go through. We have put so much time money and effort into this deal and have paid for the appraisal, inspections and survey (1500) and really want this house. What can we do or what could happen? HELLPPPP!

Message 1 of 5
4 REPLIES 4
ezdriver
Senior Contributor

Re: Not on note but responsible for taxes and insurance?

Easy. Just quit claim yourself off the deed.

Message 2 of 5
airedna3441
New Member

Re: Not on note but responsible for taxes and insurance?

hmmm...goodness, i never thought about that. I will mention that to our loan officer. Thank you!!!

Message 3 of 5
ezdriver
Senior Contributor

Re: Not on note but responsible for taxes and insurance?


@airedna3441 wrote:

hmmm...goodness, i never thought about that. I will mention that to our loan officer. Thank you!!!


That's the first thing that your loan officer should have recommended to you. It is a very simple document that has to be signed by you and then recorded in town/county public records to be legal.

 

Good luck and keep us posted.

Message 4 of 5
airedna3441
New Member

Re: Not on note but responsible for taxes and insurance?

Thanks Ezdriver, I'm going to go down there tommorow morning and do just that.

 

Message 5 of 5
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