Compare Mortgage Quotes

Refinance Rates for Today

Please enable JavaScript for the best experience.

In the mean time, check out our refinance rates!

Company Loan Type APR Est. Pmt.

Am I responsible if my father forcloses?

Posted on: 16th Feb, 2009 06:39 pm
I am listed on the deed but not on the mortgage. If my father forcloses on the mortgage, am I responsible or impacted in any way? His health is failing and we need to move him to some sort of assistance, however the home (in Florida) is not selling? Due to the current market, he is 'upside down' in the property. The bank has refused to work with him and the only option seems to just move him out of there.

Any thoughts?

Thanks,

Rich
Hi richardswearingen!

Welcome to forums!

As your name is not on the mortgage, your credit will not be affected if the property is foreclosed by the lender. Your father's credit will be affected. But if you want to save the property, then you can pay off the debt on your father's behalf.

Feel free to ask if you have further queries.

Sussane
Posted on: 16th Feb, 2009 09:01 pm
Hi richardswearingen,

Since you are not on the title, if the property is foreclosed, you will not be held responsible in any way. But this foreclosure can affect your father's credit negatively, to a great extent. Therefore it's always better to avoid foreclosure. You can also consider going for a refinance.

You can also short sale the property as it will be far less damaging on the credit score than a foreclosure. For a similar discussion on the topic please refer to the page below:
http://www.mortgagefit.com/problems/divorce-shortsale.html#76216
Posted on: 16th Feb, 2009 09:05 pm
Page loaded in 0.116 seconds.