Will foreclosure stop me from buying a house in the future?

Hi Deeborrah,

Welcome to Mortgagefit discussion board.

As the loan is in your husband's name your credit will not be affected because of foreclosure. Foreclosure will show up on his credit report only and would affect his credit score. If you were also on the loan then it would have affected your score.

So if you want to purchase a home there are no complications to it. Your credit is clear and lenders will be looking at your credit report if you apply for a mortgage in your sole name.

Do let me know if you have any other questions.

Thanks
Blue

"our home is in foreclousurer the loan is in my husbands name the deed is in both our names will this affect my credit will i ever be able to buy another house"

Dee, at the time you purchase another house if husband is also included as co-borrower then you can face difficulty in getting approval or loans offered will be for higher rates than normal.

You should try to get a mortgage in your name and do not include him on the note as he will have foreclosure on his credit report.

Miller

Every person has his/her individual credit report and derogatory remark on ones report cannot affect someone else's even if he/she is a spouse.

As the mortgage was only in your husband's name it is not going to show up on your report. It will be part of your husband's credit history.

But to purchase a home in your name you should have the required income and fulfill other requirements for approval.

Hi Dee,

When your husband is solely on the loan, then the foreclosure will negatively affect his score only. And it will be shown on his credit report.

This will not have an impact on your credit score in any way as you are not named on the loan. So, there is no point to prevent you from purchasing another house in future.

Only credit of person who takes a loan gets affected because of foreclosure. It does not affect others who are on the title of the house. You must be afraid that as you are on the title and the house is going into foreclosure, your credit will also get affected. But it is not so. There can be any number of people on the title but only those who have taken the loan will be affected in case of foreclosure.

Unfortunately with the ongoing elimination of the subprime lending sector, this question is near impossible to answer projecting into the future.

Although your husband is going to take the hit, if he is the major breadwinner, it may prove difficult in the future unless you have a substantial down payment or other compensating factors (assets, cash reserves, etc.).

Regards,

Scott Miller