Legal Question in Real Estate Law in Illinois
mortgage/title property issue
My son and girl friend wants to buy a condo. Is it okay to have the mortgage under the name of her girl friend who has good credit and the title in both of their names?
1 Answer from Attorneys
Re: mortgage/title property issue
Hello. I don't think this is such a good idea
especially since they are not married. At least, in my opinion, this is not a good idea
for your son. In many instances, the name on
the mortgage dictates who gets what in the event
of a dispute. For instance, if your son breaks
up with his girlfriend and they end up in court,
the court may determine that he did not contribute to the purchase of the condo since
his name is not on the mortgage. This would
be bad news for your son and he could walk away
with nothing. In effect, the girl friend has
two badges of ownership; her name is on the mortgage and on the title. However, your son
will only be on the title. Also, if there is
a foreclosure and (god forbid) your son's girlfriend were to die or become incompetent, the
mortgage company, in my opinion, would not be
obligated to negotiate or talk with your son at
all. The morgage company might view him only as
a tenant. I am sure you have additional questions that I will be happy to answer.