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 (it's as if he lives there. doesn't claim the interest or anything like that) 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 purchase my husband's sister's house and put it 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
She logs onto our bank account and makes the payments each month (I'm assuming through electronic check?). We tried that as well as a written letter stating he doesn't live there and is just renting it out and the lender still said no.