Posted on: 20th Jun, 2009 12:56 am
My husband and I both owned homes prior to marriage, intended to sell his but cannot. We bought a home together, I am the sole person on the mortgage loan of our joint home but he is on the title. Our circumstances have dramatically changed and can no longer afford his home. I am not on the mortgage or title as he bought this two years before we were married in Jan. His home was never refinanced and is the original loan. We paid 15% down on the current home but likely have very little equity. If he forecloses on his home, will it affect my credit? Also, can they put a lien on the current home for which he is on the title but not on the loan? Thank you so much
Consult an attorney. However, your credit cannot be affected by a default on a mortgage you never qualified for or guaranteed. Typically, the lender's only recourse is the security or real estate in this case. I would encourage you to contact the lender to find a solution even if that means a "deed-in-lieu of foreclosure"...essentially handing over the keys...or a short sale.