Will a foreclosure affect my name if it is only on the title

If the house is foreclosured, it will affect your freinds's credit score as well as yours. This is because even if your name isn't on the loan, the house's is partly yours and if the friend doesn't pay, at least you can pay off and save the house from being sold off by the lender.

Hello Luc,

If you are not on the mortgage then you don't have to worry. The foreclosure of the property will not affect your credit.

I wouldn't take any chances. Execute and record a Quitclaim Deed disclaiming any interest in the property. Send a copy to the foreclosing lender.

you are an owner of the property now. any action, such as foreclosure, must be taken against you as well as your friend. that action will be public record, and as such, will be picked up by credit reporting agencies. subsequent to that, your credit report will reflect the foreclosure.

the bottom line is: yes, indeed, your credit standing will be affected. keep copious records so you can document your position. as noted by Mac_7 above, you have the opportunity as an owner of the house to obtain a new mortgage and pay off the existing lender, thereby salvaging the home.

because foreclosure is a public record that is filed then it would show up on your credit report. If the mortgage is not in your name also, you could quit claim your portion of the property to the other party. If you do this before foreclosure if filed then it will not show on your credit report.