I am buying a house with my daughter and her fiance. I filed for bankruptcy last year, and our mortgage broker says that because it’s not been two years yet, if we want to get the best loan at the lowest rate we can afford, my name cannot be on the loan. My daughter and fiance qualify for a 6.5% loan without me, no problem. The only problem is, I have a rental lease that will not be up for another 6 months. The only way I can get out of this lease, is if I’m buying a house, which I am. But because my name will not appear on the actual loan, what proof do I have? Our broker says my name can be put on the lease to show my ownership, but will that be enough to get out of my lease? Can we draw up a contract between me and my daughter and have it notarized? Any advice will be appreciated.
If your name was added to the loan, the rate would jump to around 10%, this would make a huge difference in repayments. If you want to argue that you are buying a house, your name generally has to appear on title unless you are using a trustee to buy it for you. In which case you will need legal advice.
Maybe you could explain your dilemma to the landlord and ask they let you out of the lease.
Long term, you may be better off with a trust, or your share held in trust – maybe in your daughter’s name. You can then transfer the share at a later date into your own name when the bankruptcy matter disappears = 7 years.
Terryw
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Gee, a bankrupt trying to break a lease.
You sound like the perfect enemy to most on this forum.You can break the lease.
Worst case is you are responsible to pay the rent until a new tenant is found.
The rental manager must make all reasonable effort to advertise for and find a new tenant.
I am sure this would be preferable than a 10%+ rate.
By the time it settles there is another moneth or so gone from your lease [exhappy]
Simon Macks
Residential and Commercial Finance Broker
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0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by units4me:Gee, a bankrupt trying to break a lease.
You sound like the perfect enemy to most on this forum.First of all, for your information I’m not trying to “break” my lease. The apartments I live in do not hold you to a lease if you are buying a house or moving to another state, which I am buying a house. I will have ownership and pay my part even though my name will not be on the loan. Second of all, I suggest you know the reasons behind the bankruptcy before you pass judgement. I always had perfect credit and it was through no fault of my own that I found myself in the situation where that was the only choice left. I’ve been a single mother since my daughter was 8. Until you’ve walked a mile in my shoes how dare you judge me. I am trying to better myself and get back on my feet. By moving in with my daughter and her husband it can benefit us all and I can be with my daughter and grandchild and not have to live alone. So until you’ve been a single mother with hardly more than two pennies to rub together between pay days, I suggest you keep you opinions to yourself. I posted this question for a little advice and help, not for someone who knows nothing about my situation to look down his nose at me. This forum is to help people, not pass judgements. I assume you are a man. A woman would be more compassionate and understanding.
Originally posted by lburcham:Originally posted by units4me:Gee, a bankrupt trying to break a lease.
You sound like the perfect enemy to most on this forum.First of all, for your information I’m not trying to “break” my lease. The apartments I live in do not hold you to a lease if you are buying a house or moving to another state, which I am buying a house. I will have ownership and pay my part even though my name will not be on the loan. Second of all, I suggest you know the reasons behind the bankruptcy before you pass judgement. I always had perfect credit and it was through no fault of my own that I found myself in the situation where that was the only choice left. I’ve been a single mother since my daughter was 8. Until you’ve walked a mile in my shoes how dare you judge me. I am trying to better myself and get back on my feet. By moving in with my daughter and her husband it can benefit us all and I can be with my daughter and grandchild and not have to live alone. So until you’ve been a single mother with hardly more than two pennies to rub together between pay days, I suggest you keep you opinions to yourself. I posted this question for a little advice and help, not for someone who knows nothing about my situation to look down his nose at me. This forum is to help people, not pass judgements. I assume you are a man. A woman would be more compassionate and understanding.
I think he just meant that a bankrupt person wanting out of a lease wouldn’t be the first choice as a tenant to the landlords on this forum. I understand that this is a difficult time and a sensitive subject but if you bare your soul in a public forum you need to have a little thicker skin – how is that for a mixed metaphor!
[biggrin]
As I said earlier – the short term pain of the lease is not as bad as the long term pain of being stuck in 10+% rates.
I don’t understand your lease agreement but it sounds different to a normal lease.
Can you write a letter to the PM and explain your circumstances – perhaps even a letter from your solicitor might help? Perhaps the decision makers will treat your case compassionately and let you out of the lease? Is worth a shot.
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by Mortgage Hunter:Originally posted by lburcham:Originally posted by units4me:Gee, a bankrupt trying to break a lease.
You sound like the perfect enemy to most on this forum.First of all, for your information I’m not trying to “break” my lease. The apartments I live in do not hold you to a lease if you are buying a house or moving to another state, which I am buying a house. I will have ownership and pay my part even though my name will not be on the loan. Second of all, I suggest you know the reasons behind the bankruptcy before you pass judgement. I always had perfect credit and it was through no fault of my own that I found myself in the situation where that was the only choice left. I’ve been a single mother since my daughter was 8. Until you’ve walked a mile in my shoes how dare you judge me. I am trying to better myself and get back on my feet. By moving in with my daughter and her husband it can benefit us all and I can be with my daughter and grandchild and not have to live alone. So until you’ve been a single mother with hardly more than two pennies to rub together between pay days, I suggest you keep you opinions to yourself. I posted this question for a little advice and help, not for someone who knows nothing about my situation to look down his nose at me. This forum is to help people, not pass judgements. I assume you are a man. A woman would be more compassionate and understanding.
I think he just meant that a bankrupt person wanting out of a lease wouldn’t be the first choice as a tenant to the landlords on this forum. I understand that this is a difficult time and a sensitive subject but if you bare your soul in a public forum you need to have a little thicker skin – how is that for a mixed metaphor!
[biggrin]
As I said earlier – the short term pain of the lease is not as bad as the long term pain of being stuck in 10+% rates.
I don’t understand your lease agreement but it sounds different to a normal lease.
Can you write a letter to the PM and explain your circumstances – perhaps even a letter from your solicitor might help? Perhaps the decision makers will treat your case compassionately and let you out of the lease? Is worth a shot.
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
My lease isn’t what you’d call a “normal lease”. The apartments I live in are nice, but they are only for low income people like me who can’t afford a higher rent on their own. Most who live there are single women with children like myself who want a nice place to live without high rent. The only other places I could live for what I pay there…well let’s just say I wouldn’t even want to drive into those neighborhoods, let alone live by myself there! All I have to do is prove I am buying a house and I just wanted to know if my name on the title/deed would be enough to accomplish that. Just because a person has filed bankruptcy doesn’t make them a bad tenant. My rent is paid on or BEFORE the 1st of EVERY month. I have never been a day late with the rent the whole five years I’ve lived there. I would think that would be any landlords dream. I’m sure there are plenty of people who have never filed bankruptcy who can’t say that! I would think that would make me a friend to every landlord on this forum instead of an enemy!
Lighten up mate. I am trying to help you.
These sorts of apartments sound like they must be in high demand – there are never enough services for the people who really need them. I suspect they would only be too glad to have your one available for another needy person.
Have you spoken to them yet? Maybe you are imagining problems that don’t really exist?
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by Mortgage Hunter:Lighten up mate. I am trying to help you.
These sorts of apartments sound like they must be in high demand – there are never enough services for the people who really need them. I suspect they would only be too glad to have your one available for another needy person.
Have you spoken to them yet? Maybe you are imagining problems that don’t really exist?
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by Mortgage Hunter:Lighten up mate. I am trying to help you.
These sorts of apartments sound like they must be in high demand – there are never enough services for the people who really need them. I suspect they would only be too glad to have your one available for another needy person.
Have you spoken to them yet? Maybe you are imagining problems that don’t really exist?
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Sorry, that was not directed at you. I know you are only trying to help. It was directed at the jerk who said I was “a bankrupt trying to break a lease”. He gives a new meaning to the words “help forum”. He was clearly NOT trying to help. He seems to think that all people who file bankruptcy are just alike. He needs to realize that everyone’s situation is different and not all people who file bankruptcy are some kind of low life. Believe me I spent many sleepless nights before coming to that decision. It was one of the hardest things I’ve ever had to do. Anyway, enough abou that. No, I have not spoken to my apt manager yet. We are still negotiating a price on the house and I didn’t want to say anything until it was a done deal. I have since, however, spoken with my mortgage broker, and she seems to think that my name being on the deed should be proof enough. I hope she’s right, because there’s no way I could pay my part of the mortgage plus keep paying rent for the apartment. In the past several months they have built 7 more buildings and plan to build more. There are at least 8 apts in each building, so I don’t think my apartment would be in high demand. Thanks for the kind words! I’ll just have to pray that everything works out in the end.
When you’ve been burnt as many times as I and many others have by tenants who at times have hidden behind bankruptcy, then you see where I’m coming from..
As landlords we cop all the costs, stress and heartache of bad tenants with no help from the very lopsided tenancy laws, whist the culprits can easily go on to rip off the next landlord.
I’m not suggesting that you fit this category, but believe it or not it does happen.
Have a nice day.
The Jerk.lburcham
Just be aware – your mortage broker mentioned 2 years, but as Terry mentioned, its more like 7 years before you wont have any difificulty, or pay higher rates.
Regards
JohnInspired Finance
(02) 9944 7776Originally posted by units4me:When you’ve been burnt as many times as I and many others have by tenants who at times have hidden behind bankruptcy, then you see where I’m coming from..
As landlords we cop all the costs, stress and heartache of bad tenants with no help from the very lopsided tenancy laws, whist the culprits can easily go on to rip off the next landlord.
I’m not suggesting that you fit this category, but believe it or not it does happen.
Have a nice day.
The Jerk.I can understand where you are coming from as a landlord, but you need to remember that we are not all alike. Please keep that in mind before making a blanket remark like that. I may have filed bankruptcy, but I do not hide behind that to try to rip people off. It’s people like that who give the rest of us a bad name. There are those of us out there who are honest, and we all make mistakes. Unfortunaley some people don’t learn from those mistakes. But I have, and I’m just trying to make the best of what I have and rebuild my life. So give me a break. You have a nice day too!
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