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Your name is on the deed to a house which is facing foreclosure but it is not on the mortgage will it affect your credit?
Wiki User
∙ 9y ago
Technically the foreclosure should not effect your credit, because it is a lawsuit against the person(s) who took out the mortgage. BUT, in reality, because your name is on the deed, the foreclosure could make it to your credit report. This is something that wouldn't effect your score much, but someone looking at your report might be able to tell that your home was in foreclosure.
Technically, in Massachusetts and most other jurisdictions, if the lender forecloses it can only foreclose against the person who signed the note and mortgage. If you are a joint owner and didn't sign the mortgage then the lender cannot foreclose on your interest in the property. Your name shouldn't be mentioned in the foreclosure at all and your interest in the property should remain in your own name.
If you want to sell your interest to the lender it should conveyed by a separate deed with you alone as the grantor. You should seek the advice of a real estate attorney who could advise you about your rights and how to make the transfer properly so it doesn't have an effect on your own credit at all.
The lender erred by not having all the fee owners sign the note and mortgage. If only one owner signed then the lender only received that person's interest in the property. Thousands of mistakes like this one, not having all the owners sign, were made by lenders during the lending craze.
Wiki User
∙ 9y ago
Wiki User
∙ 13y agoIf you didn't sign the mortgage then it will not be reported on your credit record.
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Are you liable if you are getting a divorce and your house is facing foreclosure but your name is not on the deed?
Getting a devorce and house is facing forclosure but my name is not on deed. Am I liable.
Is it better or worse for your credit to let the bank foreclose on a mortgage of a second property while facing bankruptcy?
A foreclosure or bankruptcy is never good for your credit, this is something you'd be better off discussing with an attorney. You can avoid foreclosure by filing bankruptcy.
What if your daughter bought a home with her grandmother as a co-signer she now faces foreclosure should she file chapter 13 bankruptcy how does all this effect her grandmother?
If the house is headed for foreclosure, anyone on the title and the mortgage is facing foreclosure, not just one of the owners. If the daughter was responsible for the mortgage payments by agreement with her grandmother, and got behind in payments, she may be able to pull the mortgage out of foreclosure by a Chapter 13, if she can afford the plan payments and the current mortgage payments. If the Chapter 13 cannot succeed without financial input from the grandmother, it will be up to her to let it go forward and lose the house. Either way, the fact that the house is in foreclosure will affect her credit score.
How can foreclosures attorneys help someone who is facing foreclosure?
Attorneys can often help negotiate alternatives to foreclosure on your behalf. If the foreclosure proceeds, an attorney can help advise you on how best to protect your rights and credit.
What happens to existing credit cards after foreclosure?
During the foreclosure process, there will not be adverse effects to a homeowners' credit cards if all are paid on time. If they fall behind, of course, they will have even more damage to their credit scores, and may face severely negative consequences from creditors. However, simply being in foreclosure itself will not cause homeowners to lose their credit cards or have interest rates increase or extra charges added. Many credit card companies issue contracts that state that the company may be able to raise interest rates on the card even if the borrowers never miss a payment on *that* line of credit. If they miss a payment on any *other* credit card, said company may raise rates. Even if a credit card is with the same bank as the mortgage, there is little that a mortgage company can do if a borrower's credit cards have not gone into default. However, after a foreclosure has ended, and despite the fact that some owners may have been able to stop foreclosure, there will be severe damage to their credit reports from the late mortgage payments and/or foreclosure. Such homeowners should be careful not to close out any credit lines that they may plan on using in the future. Because of the damage to their credit rating that late mortgage payments or a foreclosure will cause, it will be difficult, if not impossible, to qualify for new loans or credit lines with competitive interest rates for years after facing foreclosure. Unless the homeowners voluntarily close their accounts or fall behind on the payments, the credit card companies will not do very much at all before, during, or after the home foreclosure process. The companies have no reason to take any negative actions against the borrowers just because they are facing foreclosure on a property they own. In fact, as long as the homeowners can keep on top of their credit card payments, they may try and request a higher credit line during foreclosure to be able to use some of that money to get back on top of the mortgage, although >>this is not a very sustainable solution<<. On a somewhat unrelated note, just as homeowners who have Home Equity Lines of Credit on their properties and have had access cut off, credit card customers may also see companies start to decrease the total available to borrowers. Banks are beginning to realize that there may be a larger risk of default in consumer lending and are taking defensive actions to limit access to credit for debtors in the greatest danger of falling behind. So, before facing foreclosure, homeowners may want to consider cutting up their current credit cards and getting used to a life without borrowing money, since their lenders may cut off their access soon anyway.
What is the purpose of an equity home loan mortgage?
An equity home loan mortgage is similar to a second mortgage where it is possible to borrow on the equity of a home. This helps reduce financial pressure like facing a foreclosure on a home.
How does mortgage modification help the borrower?
It allows for the mortgage to be changed after the fact. The modification can be of use to those facing foreclosure who want to continue making payments but can't satisfy the original agreement.
What is a good reason for refinancing mortgage?
Mortgage refinancing can become a good option when you are facing foreclosure. Of course you have to make sure that you consult your realtor or lender first before doing any actions in relation to your mortgage refinancing plans.
What is in a mortgage contract that releases the mortgagee from the contract if the property value decreases to negative equity?
There is no such clause in the usual mortgage. In fact, negative equity is a huge problem worldwide at the moment. Millions of homeowners are "upside down" on their mortgages, many are facing foreclosure and many are simply walking away from their homes.There is no such clause in the usual mortgage. In fact, negative equity is a huge problem worldwide at the moment. Millions of homeowners are "upside down" on their mortgages, many are facing foreclosure and many are simply walking away from their homes.There is no such clause in the usual mortgage. In fact, negative equity is a huge problem worldwide at the moment. Millions of homeowners are "upside down" on their mortgages, many are facing foreclosure and many are simply walking away from their homes.There is no such clause in the usual mortgage. In fact, negative equity is a huge problem worldwide at the moment. Millions of homeowners are "upside down" on their mortgages, many are facing foreclosure and many are simply walking away from their homes.
Can the mortgage company seize your IRA or annuity account in Florida?
My mother is 75 and is facing foreclosure on her property. She is concerned of what the mortgage company can seize of her personal property, especially her IRA, annuity and car. What are they legally allowed to take?
I am about to go into foreclosure. Where online can I seek mortgage advice?
A great website available when facing foreclosure is http://portal.hud.gov/portal/page/portal/HUD/topics/avoiding_foreclosure. You might also want to try you personal banking website or http://www.foreclosurefish.com/
To whom would one go for advice regarding a home foreclosure?
In the United States, there are government programs in place to help homeowners avoid foreclosure on their home. Some of these programs can help to lower monthly mortgage payments and interest rates. The USA Government website is an excellent source of information for someone facing foreclosure.
