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No; property ownership interest and financial liability for any loans on the property are separate. A mortgage loan is the responsibility of the signers on the promissory note, and negative credit information may only be reported on those signers in the case of delinquency or foreclosure. The only way heirs could end up having their credit affected is if they refinance or transfer the debt into their names and sign a new loan note.
Heirs can inherit the property, and therefore be affected by actions taken against the property (an inherited home can still be taken by foreclosure), but they are not legally liable for debts; the estate of the decedent is, and therefore no negative credit reporting will occur for the heirs.
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If my mother is an authorized user on my credit card and she is currently in the process of foreclosure would her foreclosure as an AU affect your credit?
No, having her listed as an authorized user will have no impact on your credit score.
How does foreclosure affect credit?
Your credit will be affected negatively with a possibility of your credit score dropping 200 or more points. Not sure if you are in foreclosure now but if you are not make sure to communicate with your banks regarding your situation to prepare for other options and at least the banks will be aware.
How long does a foreclosure stay on your credit report?
A foreclosure will typically remain on your credit report for seven years.
How long does a foreclosure stay on your credit report and affect it?
7 years + 180 days from date of first delinquency.
What happens if you are a cosigner on a house that is being foreclosed on?
The foreclosure will affect your credit record. You are fully responsible for paying the loan.
Are the heirs to a property in foreclosure responsible for mortgage?
The estate is responsible for the debts of the deceased. None of the assets can be distributed until the debts have been paid. The bank has a prior lien on the property. The foreclosure of that mortgage will not affect the heirs in any way except to deprive them of inheriting the mortgaged premises. If the heirs wish to maintain that property then they would need to negotiate with the bank and pay off the mortgage. The foreclosure will not affect the credit records of the heirs.
Does a Deed in lieu of foreclosure affect credit the same as a foreclosure?
Deed in lieu of foreclosure is not nearly as devastating to your credit as is a full foreclosure. Below is an article about the pros and cons of deed in lieu.
If your mother in law is the executor of the will but does not have her name as an owner of a house and it is repossessed in the state of Georgia will it reflect on her credit?
It will affect her credit if she executed the mortgage along with her husband. If her name is not on the mortgage or the property then it will not affect her credit. She should consult with an attorney who can review the situation and determine what her options are. Perhaps the bank would accept a deed from the heirs in lieu of foreclosure.
If my mother is an authorized user on my credit card and she is currently in the process of foreclosure would her foreclosure as an AU affect your credit?
No, having her listed as an authorized user will have no impact on your credit score.
What happens to your credit on a short sale?
A short sale will have a detrimental affect on your credit record but not as bad as a foreclosure.
How does foreclosure affect credit?
Your credit will be affected negatively with a possibility of your credit score dropping 200 or more points. Not sure if you are in foreclosure now but if you are not make sure to communicate with your banks regarding your situation to prepare for other options and at least the banks will be aware.
How long does a foreclosure stay on your credit report?
A foreclosure will typically remain on your credit report for seven years.
How long does a foreclosure stay on your credit report and affect it?
7 years + 180 days from date of first delinquency.
What happens if you are a cosigner on a house that is being foreclosed on?
The foreclosure will affect your credit record. You are fully responsible for paying the loan.
Is there still a past due amount on your credit report after foreclosure?
The foreclosure will be on your credit report indefinitely.
Will a foreclosure from someone's past affect their spouse's credit?
I hate to sound like a lawyer, but it depends. If you have separate credit reporting accounts, it may affect the wife's credit slightly. If there is only a joint credit account, yes, it will affect the wife's credit the same as the husband's. You can ask the 3 major credit reporting agencies (Experian, TransUnion and Equifax) to separate out your credit histories. If the foreclosure has already started, it may be too late. Get a free credit report from each (once each year) at www.annualcreditreport.com.
How long does foreclosure stay on your credit report?
A foreclosure will typically remain on your credit report for seven years.
