Not on Mortgage Note or Deed But Being Sued for Foreclosure?

Thanks, Sussane. The papers actually arrived this morning. The attorney I was working with in FL (about the other inheritance issue) says that since my name is nowhere associated with the lien or deed, I should ignore it. Do you recommend I just send a letter direct to the lender, or should I respond to the legal papers I've received? Would it need to be notarized or anything, or just state the facts?

Thanks! Jeannie

Hi Jeannie!

Welcome to forums!

As your name is not on the mortgage note or on the deed, you can send a formal letter mentioning the same to the lender.

Feel free to ask if you've further queries.

Sussane

I have a lien on a house that is now in foreclosure. Not in my name and never has been. I am named as a defendant, and am really ticked off about this. I was served by a sheriff, and it states that the other party owes nearly 180K but states if I dont file ( which cost to file and answer) then I can lose by defautl. I know the mortage co has first lien, but why was I sued. My name was in the paper along with this defendant who owns the home. I am stressed and feel very upset about this. Although they have a copy of my lien, what was filed in the local paper states I am a def, along with the loser that stopped making his payments. I am owed from this homeowner and now I am sued? Just don't get it. They could have sent me a form to sign off, but I am sued and not a happy camper. Please help ! Thanks

Hi Robinbobbin,

I guess there has been some kind of misunderstanding which needs to be cleared. You should contact a real estate attorney and he will help you in dealing with this matter.

Thanks

My husband and I are about to get a divorce. My husband just moved in a house he bought. My name is not in the mortgage but my name appears as the spouse. If he doesn't pay the mortgage, am I responsible for it. We are still not divorced and this is in the state of Florida.

Hi Janetlabori,

If your name is not mentioned on the mortgage documents, then you won't be liable for paying the loan payments. The lender won't be able to come after you for the payments.

Thanks

[justify:a72eb37310]There seems to be a lot of good information here mixed with some confusing misstatements so I thought I would try to explain why some people are getting sued in foreclosure when they don't think they should be.

Most people, even most attorneys, speak about house loans by referring to the "mortgage". You will frequently hear people say that they haven't paid their mortgage payment or that they are behind on their mortgage. Neither is really correct.

The MORTGAGE is not a promise to pay. The promise to pay is the NOTE. The note is basically an IOU that describes the terms under which the lender agreed to loan you money. The note itself is not secured and is similar to borrowing money from a friend or running up a credit card debt. You still owe the money that you borrowed, but if the lender wants to force you to pay it back they will have to sue you.

A mortgage is a security device that attaches that promise to pay to some form of collateral. Typically, the collateral is the house that you used the money to buy, but it could be attached to a different asset as well. If you sign the mortgage you are agreeing to allow the promise to pay to be secured by your property interest in that asset. You are not agreeing to pay the underlying debt. The most that you could lose if the borrower defaults is your interest in the property.

If the person who promised to repay the note fails to do so then the lender can "foreclose" on the mortgage and force the sale of the asset to satisfy the unpaid debt.

When a lender forecloses on a mortgage the are essentially eliminating any and all claims to the property that are inferior to their mortgage lien. However, in order to foreclose the lender must give everyone with an inferior lien notice of their intent to foreclose. This means that anyone with ANY property interest has to be made a defendant in the foreclosure lawsuit.

If you are a tenant living in a rental property you will be sued in the foreclosure case. If you are a spouse (even if you are not on the deed/note/mortgage) you will be sued in the foreclosure case. If your grandfather died and there is even the slightest chance that you might have some inheritable property rights you will be sued in the foreclosure case. The lenders will even sue imaginary parties such as "unknown Tenant #1" or "unknown Spouse #1" just to make sure that everyone who may have an interest is named in the lawsuit.

The important point is that being named as a defendant in a foreclosure lawsuit will not, in and of itself, damage your credit or make you liable for the promise to pay. You are merely there so that you can, if you want, participate in the foreclosure action and try to protect your property rights. If you choose not to participate a foreclosure judgment will be entered against you but it merely forecloses any property interests that you may have had in the property. It does not count as a foreclosure judgment for purposes of your credit and they can not use that judgment to make you responsible for a promise to pay that you never signed.[/justify:a72eb37310]

Thanks for sharing the information!! :)

My ex is being sued for foreclosure on a house he purchase before we were married. He refinanced during our marriage, but I was not on the note, mortgage or deed. I'm about to be served papers in the case and am wondering what the legal implications might be.

Hi sandy,

If your name is not mentioned on the mortgage docs or the property deed, then you will not be considered liable for anything. In that case, the lender will not send you any legal notice.

Thanks