Posted on: 17th Mar, 2009 08:31 am
I just had a credit counselor tell me that my husband will have notice of foreclosure on his credit report becuase he is on the deed on an investment condo that he put up the 10% down payment on and now daughter-in-law (who is only one on the note) is "walking away." Myhusband and daughter-in-law are only ones on deed. The counselor said that my husband will take at least a 250 point hit on his credit. We have an attorney who will do the response on the civil summons served us due to Lis Pendens filed on the Naples Fl condo, but she advised us to find out what affect on our credit this will have before she acts on our behalf. What if husband does a Deed In Lieu to the lender; doew that make this mess any better? We know husband is not liable for the debt (since she is only one on note) but we need to protect ourselves in best way possible? Also, someone told us he can still have liability with what is sure to be a deficiency decree, but I don't think that is true. Mortgage is $316,000;fair market value $90,000-$100,000. Deutsche Bank (lender) did not respond to 2 short sale offers they presented at $70,000 each. They supposedly do not have the original note. They got this note after a March 2007 refi she did with American Home Mortgage. All help is appreciated.
Hi naples,
If your husband's name is only on the property deed, then a foreclosure on that property will not affect his credit score. I think the daughter-in-law should apply for a deed in lieu of foreclosure with the lender as her name is on the mortgage docs. If there is a deficiency amount resulting from the deed in lieu, the lender will forgive it.
If your husband's name is only on the property deed, then a foreclosure on that property will not affect his credit score. I think the daughter-in-law should apply for a deed in lieu of foreclosure with the lender as her name is on the mortgage docs. If there is a deficiency amount resulting from the deed in lieu, the lender will forgive it.
If daughter- in- law quitclaims succesfully now, the property rights will be in the your husband's name. Naurally, the foreclosure will be on husband's name. That you need to avoid and his sign will obviously be required. Just keep this at the back of mind.