Does A Foreclosure Criple Your Credit Report When Your Name Is On The Deed, But Not The Loan?

Many foreclosure victims end up in situations when their name is on the title of a home, but not the loan. When these properties go into foreclosure, foreclosure victims in this situation always contemplate how the foreclosure will effect their credit. Another fear is that the servicer can pursue them to repay the loan because their name is on the title.

There are also many scenarios where co-signers are not on the title, so they don't think they can be hurt from the foreclosure. In the case of the co-signer, they need to be very worried, because they are 100% responsible for repaying the note. The bank can pursue them for a deficiency judgment and the court can possibly force them to pay back the note. If you are a co-signer, stop reading now and find help immediately; you need it! Otherwise, keep reading.

I've been working with clients in. In general, the most worried about downside to people in this situation is that they will lose the home and any equity they have in it.

Most of the time, if you never signed an agreement to pay the note, the bank will not be able to get a judgment or lien against you. They may try to call and threaten you, or send collectors after you, but when all is said and done, you are not required to repay a note you never agreed to.



Although, If you signed the original note agreement (or any agreement later) and then had your name removed, you may still be responsible and the bank could try and collect from you. Also, if the bank paid taxes on your behalf, I would expect them to try and collect them from you, but I doubt a court would allow them a lien or judgment.



If you have found yourself in this situation and you're worried about the bank coming after you, it's best to speak with a foreclosure negotiator to find out what defenses you may or may not have. In many foreclosure situations, you may be able to keep the home, with a repayment plan, or loan modification. There are also several legal "loop holes" for people in this situation that can help people stay in the home much longer.

Even if your name is not on the note, make sure to do a lot of research so you know about all your options.

If you want to try and keep the home, adding your name to the note may be a possible way to get approved for a loan modification. This is when the terms of the note are changed and the payments can be drastically lowered. The reason adding your name to the mortgage may be helpful is because your additional income may be enough to make the home affordable. But this is a drastic step to take and could be dangerous if the loan modification is not 100% approved and affordable. Make sure that you always speak with a professional before making this decision.
Nick publishes articles on how to stop foreclosure. To learn more about various methods to save a home, before or after a foreclosure auction, you can visit his website online here: http://www.foreclosurefish.com/

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