Posted on: 24th Jun, 2011 09:03 am
I purchased my home on my own when spearated from my husband. I refinanced a year later when we were back together. Neither his credit or information were used in obtaining the refi. (or the original loan.) However, the title insurance company employee had my husband sign the mortgage document when I refinanced. He is not on the note or any other documents. I am now about to be foreclosed on. Is this going to affect his credit? I have read that if he is not on the note, it shouldn't. But I have also read that it will be picked up by the credit bureaus as public record and his credit will take a hit. What should or can he do to protect himself from this happening?
He is applying for a mortgage on his own at present. My debts were not included. Again, he signed my "mortgage" -- but is not on the note or deed. Does siging the mortgage as my husband make him an "owner" of any sort? I'm sorry if I am unclear - it is very confusing to me. My concern is his credit, being that he signed the mortgage document (but again, not the note). I will check into died in lieu -- thanks for your suggestion. :?
He either did or did not sign the mortgage. If he is on the note, he signed the loan docs. If he is not on the note, he is not on the mortgage or loan docs. Check your loan docs to be certain he is not on the loan. I think you are confusing the quitclaim he signed, because you live in the community prop state, he was required to sign off. Again, check your loan docs for who is listed, and go from there. Also, check with title, call a local title office to check who is actually on title.
Michigan is not a community property state. :wink:
Where does it say Michigan anywhere in this post. If its not a community prop state, then the hus would not have to sign anything.
He was told to sign the mortgage document by the title insurance employee when I was refinancing my mortgage. He did not sign the note or any other document -- just the mortgage. (Mortgage and note are two different documents. Note is the obligation to pay, I believe.) I have the note, and it only has my signature. The mortgage, however, has his signature as my husband. I hope this clarifies it a bit.
When you say the mortgage, are you referring to the deed? Some states use a "mortgage" some states use a "deed of trust" they are very different in recourse for the lender and deficiency judgements. Deed of trust states the lender can only take back the collateral. Some states using mortgages, or deeds of trust with the right of deficiency can claim the judgement for 20 years. If he is on the "deed" whether mortgage deed or deed of trust, he then is "an owner" of the property as he would be on the title. You can not be on the loan, and not on title. But you can be on title but not on the loan. If he is on title, then he is also party to the legal action from the lender if they chose so.
In Michigan, the document used is a mortgage -- guess that would be the deed of trust in other states. If I am understanding you, he is considered an "owner" even though he signed as my husband and is not on the note. Given that, will his credit be affected through a foreclosure even though his credit was never used to obtain or maintain the mortgage?
If his credit was not used, as he is not on the mortgage loan docs, then his credit is not affected. There could be a foreclosure case against both, since you are both "owners of record on title" So since he is not on the loan, have him removed from title to be safe. Contact your local title company to verify he is on title and have the quitclaim prepared to remove him, as long as he cooperates. Good Luck and I hope all works out. The thing I would look into is if your state has the right to file deficiency judgement. Foreclosure will affect your credit, and possible taxes, but the judgement can haunt for a long time. Be concerned with that, and call your state Dept. Of Real Estate to verify if your lender can file the judgement.
I am sorry if I am misunderstanding (and I probably am), but what would he quit claim if he is not on the warranty deed (deed to the property) to begin with-- is there anything for him to quit claim? He is only the on mortgage -- not the note or the deed. Can he still do a quit claim?
Hi Guest,
If his name is not mentioned on the property deed, then he won't have to sign the quitclaim deed.
If his name is not mentioned on the property deed, then he won't have to sign the quitclaim deed.