So three years ago my husband put a house in his name for his sister and her family. Unfortunately, he couldn't say no as his mom pressured him and his sister has kids. Well, three years later we want to buy a house, but due to debt-to-income he can't get a loan. His mom did his taxes for years and never put the house on his taxes as he would've owed. His sister can't get the house in her husbands name because he had a car repo'd years ago and even though it's old, the bank won't give him a loan (so she says). He also had his tax return taken from him two years ago due to not paying his student loans and he up until a year ago had no revolving credit. My husbands parents just bought a house, but were only approved for $150k. After the dust settles from their home purchase they want to put my husband's sister's house in their name (why didn't they do this before...). This has affected us so bad because we're forced to rent and he had to buy a new car due to debt-to-income. Everytime I log on to our bank account I'm forced to look at the mortgage. It has put a lot of stress on our relationship too. We want to buy a house next year but don't know what to do. We even have money saved. Any suggestions???
Additional Details
His mom hasn't been putting any of the information on the taxes so I don't see how that's fraud. His sister pays the mortgage on time every month but it has never been documented as rental property. It's as if he lives there but doesn't technically. His parents want to refinance it as soon as they can but I don't see how that's possible as they were only qualified for a 150k home and their new home they just purchased was 118k. He was 23 at the time not that age has anything to do with it.