Mortgage question - Temporary transfer of title to parents

[CrazyCaper]

All the wise and lawyer/broker types of CP,

My wife and I are looking at refinancing and consolidating some bills. I have talked with a broker who can offer us a "phenomenal" interest rate, however, due to our credit score, cannot qualify for.

He suggested that we transfer the title to my wife's parents(who live with us btw). They would remain on title for 6 months and then we would be transferred back when our credit has improved.

Has anyone else heard of this practice before? Just want to make sure this is a "legitamite" business practice.

Thanks,
CrazyCaper

[troutman]

Can you not all go on title together? Remove your parents after 6 months.

There may also be capital gains issues (is this also their principal residence?)

[Mike Oxlong]

Yeah I would see if you parents can just co sign for you. Once your credit improves you can look at removing them from the mortgage.

Is this rate "crazy" enough to make it worth paying the penalty to get out of the mortgage? Make sure you know what it is going to cost before you move ahead with anything.

Fire away with any other questions you have I am happy to help out if I can. PM me if they are of a private nature.

[CrazyCaper]

Yes, this is their principal residence as well. I'm not sure why he didn't want all of us on title at the same time. Is that possible?