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Applying for new loan and name is on deed of another home in pre foreclosure.

Posted on: 25th Jun, 2010 08:28 pm
Hello. My name is currently on the mortgage but not the note of a property that is about to go into foreclosure. I am applying for an FHA loan and would like to know if this will hinder me from being approved on a new loan since I do not technically owe any money on the other property. I have been pre approved by the bank for my new home and have already made an offer on the new home. Is FHA going to deny me since I am listed on the deed of another property even if I don't owe any money on it? Can I quitclaim deed myself off deed and will it make a difference? Thank you1
You first need to clarify which it is, you said 2 different things. You first say you are on the mortgage and not the note but that' an oxymoron. Please clarify if you are on the mortgage note or not.
Posted on: 25th Jun, 2010 09:57 pm
My name is on the mortgage, but not the note.
Posted on: 26th Jun, 2010 08:39 am
Hi Guest,

A query similar to yours has been replied to in the given page:
http://www.mortgagefit.com/propertytransfer/about40213.html

Take a look at it. Hope it helps you.

Thanks
Posted on: 27th Jun, 2010 11:53 pm
James,

The answer you gave at the provided link is incorrect.

Guest, being on the mortgage and note is the same thing and its still unclear what you are saying since you previously said: "FHA going to deny me since I am listed on the deed of another property even if I don't owe any money on it? "

My best guess to what you are asking is if you can get an FHA loan if you are not on the mortgage but on title to a property that is going into foreclosure. Consider the question asked in Section VIII Item C of the universal residential loan application that you completed to be pre-approved which asks:

"Have you had property foreclosed upon or given title
or deed in lieu thereof in the last 7 years?"


as well as Section VIII item E which asks:

Have you directly or indirectly been obligated on any
loan which resulted in foreclosure, transfer of title
in lieu of foreclosure, or judgment?


If you were on title to a property that went into foreclosure you must answer yes to one or possibly both of these questions. It does not matter if you were on the mortgage or not for item "c".

Answering "yes" to either of these may disqualify you from an FHA loan for an extended period of time.
Posted on: 28th Jun, 2010 12:31 am
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