Posted on: 30th Mar, 2007 12:36 pm
my wife has a home in colorado with the loan entirely in her name. This house is going into foreclosure as we speak. At the same time, I am purchasing a house under my name alone and the credit report showed no indication of her mortgage. I am in the process of closing on my house in Washington and will not have her name on the loan or title. My question is am I at risk at all of being affected by her foreclosure? We are still married.
thanks!
thanks!
hi,
foreclosure on the house which is in your wife's name will not affect your new house purchase as you had no liability on that loan.
you can go ahead with the purchase. and since you will not put her on the title of this new house, even if any deficiency judgment is granted to lender it will not affect you.
but i would also advice that try negotiate a short sale or deed in lieu of foreclosure on that house instead of letting it go into foreclosure. as it will badly affect your wife's credit score and if in future she needs to borrow, it will be a problem.
miller
foreclosure on the house which is in your wife's name will not affect your new house purchase as you had no liability on that loan.
you can go ahead with the purchase. and since you will not put her on the title of this new house, even if any deficiency judgment is granted to lender it will not affect you.
but i would also advice that try negotiate a short sale or deed in lieu of foreclosure on that house instead of letting it go into foreclosure. as it will badly affect your wife's credit score and if in future she needs to borrow, it will be a problem.
miller
I too agree, as your name is not on the loan, your new home purchase will not be affected by foreclosure of this previous home.
And you have yourself checked the credit report and it does not show the loan as one of your debts as expected.
And you have yourself checked the credit report and it does not show the loan as one of your debts as expected.
Avoiding foreclosure will be more preferable. As you are purchasing a new home, see how the housing market is in your area and try to do a short sale or give up the property by d-i-l. Your wife's credit will get affected but not as badly as it would if there is a foreclosure on her report.
Hi Guest,
If the loan taken out against the Colorado house is entirely in your wife's name, you will not be affected if the house goes into foreclosure.
Moreover, if your wife's name is not on the mortgage, then you will not be having any problems regarding getting the loan.
Even though you are still married, the second property will still be in your name; therefore, there is no risk at all of your being affected by her foreclosure.
Thanks,
Sara
If the loan taken out against the Colorado house is entirely in your wife's name, you will not be affected if the house goes into foreclosure.
Moreover, if your wife's name is not on the mortgage, then you will not be having any problems regarding getting the loan.
Even though you are still married, the second property will still be in your name; therefore, there is no risk at all of your being affected by her foreclosure.
Thanks,
Sara
Thank you everyone! I appreciate the help and information. We tried to work with the lender to do a d-i-l and they are pushing back with all these requirements in order to agree to it. Can we just do a d-i-l ourselves or do we need the lender to agree to it beforehand?
thanks again!
thanks again!
Hi,
I am sorry but you cannot give up the house on your own, lender has to approve/accept the house by way of deed in lieu of foreclosure. But also tell me what kind of requirements they are asking for.
I am sorry but you cannot give up the house on your own, lender has to approve/accept the house by way of deed in lieu of foreclosure. But also tell me what kind of requirements they are asking for.
No, you cannot do a deed-in-lieu of foreclosure yourself.
A deed-in-lieu basically implies that the borrower who has defaulted on the loan has to transfer ownership rights on the property to the lender or the loan company. So, you will have to deal with the lender in this situation
A deed-in-lieu basically implies that the borrower who has defaulted on the loan has to transfer ownership rights on the property to the lender or the loan company. So, you will have to deal with the lender in this situation