Posted on: 12th Aug, 2009 09:53 am
My wife is the sole party named in the loan and title. we have never been late on payments and are -140,000 in equity now with the current market. I am looking into a purchase of a bigger home with my parents, my wife would not be listed on that loan or title.
If we can not rent our current home and it falls into forclosure can the bank come after me and/or my parents because of the new home?
Should we do deed in lieu? we have 2 loans. 80/20, interest only on the current home.
If we can not rent our current home and it falls into forclosure can the bank come after me and/or my parents because of the new home?
Should we do deed in lieu? we have 2 loans. 80/20, interest only on the current home.
hi rdubb,
the lender will not come after you or your parents after the foreclosure of your current property because you all are not listed on that property. the lender will sue your wife in order to recover the deficient amount resulting from the sale of the property.
your wife can go for a deed in lieu of foreclosure. as far as the first mortgage is concerned, she'll not be liable for the deficient amount resulting from the sale of the property. however, she would still remain liable for the second mortgage dues.
thanks
the lender will not come after you or your parents after the foreclosure of your current property because you all are not listed on that property. the lender will sue your wife in order to recover the deficient amount resulting from the sale of the property.
your wife can go for a deed in lieu of foreclosure. as far as the first mortgage is concerned, she'll not be liable for the deficient amount resulting from the sale of the property. however, she would still remain liable for the second mortgage dues.
thanks