[USER]

Hey my goal is FIRE obviously but I co-signed for 2 houses (1 is a rental and 1 I live in).

I don’t make any payments towards either (they come out of my moms account).

My mom wants to refinance the rental property and initially I wanted my name off but people keep telling me the house is “good debt” and good for my credit.

She also says the primary house will be mine when she’s gone and the rental property for my sister.

My concern is what will happen if I want to buy a house later. And obviously my credit will be effected with missed payments.

I co-signed in 2019 and there are no delinquent payments.
My question now is should I keep my name off when we refinance?

Can I still FIRE co-signing 2 houses?

Any recommendations helpful.

Thanks.

[Alicia]

Your debt to income ratio may be skewed drastically when you go to buy your own.

[Glen]

I’m going to suggest something different. At the moment, you do not want your name on the title.

If you wait to properly inherit the property once your mother has passed, you will receive it at a stepped up basis and will not have to pay taxes on the appreciation in the property value.

[Andrea]

If you had to cosign for your mom, it is because she has made financial mistakes, do not take advice from her.

Cosigning is typically a bad idea almost always.

I would do everything I could to get my name off.

But yes, they take your “liabilities” along with your income, credit ect.

If your mom loses her job or gets sick, you HAVE to pay.

[Angela]

Keep your name on the house that you’re going to inherit anyway.

Tell your sister to cosign on the one shes going to inherit.

This makes the transfer easier when your mom passes unless she already has both homes in a trust for you & your sister.

[Elizabeth]

Tell her you’re not able to co-sign anymore because you are working towards buying a house and don’t want it to affect being able to buy your own.

I guess the “danger” is that she will sell it then and then you won’t have a house to live in.

[Sue]

Tell her when she refinances, it’s based only on her credit this time but when time for closing, the title agent can have both of you on the deed.

Unless she is telling you that she wants to refinance because she is in need of your credit to use for a loan again.

I would not refinance to draw equity out!

You should only refinance because she can now finally handle paying a loan for herself in her own name.

We have a family home I live in and our son’s name is only on the deed and our name was refinanced with his name out of it once our other home in another state sold.

[Author]

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