Posted on: 23rd Jan, 2010 06:10 am
i am on a deed that was quit claimed to me two years after the house was refinanced. i am not on the mortgage at all. now the mortgage is behind, however, i was told that if this house goes into foreclosure or short sale because my name is on the deed, if i ever go to purchase a home it will affect me negatively because a home i owned went into short sale or foreclosure even though i am not on the mortgage. can you tell me with any certainty if this is true?
i was also thinking of contacting the mortgage companies to see if they would be willing to refinance the home to me since i am on the deed but not the mortgage but at a lower payoff or do modification as i can not afford these payments as it stands now. would they agree to this or just choose to foreclose?
judys1961@aol.com
i was also thinking of contacting the mortgage companies to see if they would be willing to refinance the home to me since i am on the deed but not the mortgage but at a lower payoff or do modification as i can not afford these payments as it stands now. would they agree to this or just choose to foreclose?
judys1961@aol.com
>>Can you tell me with any certainty if this is true?
Your credit cannot be damaged if you're not on the Mortgage Note.
>>Would they agree to this or just choose to foreclose?
Have all the payments been made by you during the past 12 months? Can you show them cancelled checks that confirm what you're telling them? If "no", I'd expect them to foreclose. If "yes", it's worth a phone call to them - the worse they can do is say "no". If they say "yes", you'll still have to qualify for the new mortgage, even if it's assumable.
Your scenario is one of many reasons why Lenders hate it when Title is changed by homeowners. If you do call the Lender, be prepared for them calling the loan due in full immediately. They're entitled to do that because the due-on-sale clause can be invoked because Title was modified after the mortgage funded, and no longer matches the Note.
Your credit cannot be damaged if you're not on the Mortgage Note.
>>Would they agree to this or just choose to foreclose?
Have all the payments been made by you during the past 12 months? Can you show them cancelled checks that confirm what you're telling them? If "no", I'd expect them to foreclose. If "yes", it's worth a phone call to them - the worse they can do is say "no". If they say "yes", you'll still have to qualify for the new mortgage, even if it's assumable.
Your scenario is one of many reasons why Lenders hate it when Title is changed by homeowners. If you do call the Lender, be prepared for them calling the loan due in full immediately. They're entitled to do that because the due-on-sale clause can be invoked because Title was modified after the mortgage funded, and no longer matches the Note.