Will A Foreclosure Criple Your Credit Grade When Your Name Is On The Deed, But Not The Mortgage?

By Author: Nick Adama
Total Articles: 197
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Many homeowners find themselves in circumstances where their name is on the title of a house, but not the mortgage. When these properties go into foreclosure, homeowners in this situation always wonder how the foreclosure will effect their credit. Another fear is that the lender can go after them to repay the loan because their name is on the deed.

There are also many cases where co-signers are not on the deed, so they don't think they can be hurt from the foreclosure. In the case of the co-signer, they need to be very concerned, because they are 100% responsible for covering the mortgage. The lender can go after them for a deficiency judgment and the court can actually force them to pay back the mortgage. If you are a co-signer, stop reading now and find assistance immediately; you need it! Otherwise, keep reading.

I've been working with people in. In general, the largest downside to homeowners 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 mortgage, the lender 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 ultimately, you are not required to repay a mortgage you never agreed to.

However, If you agreed to the original mortgage agreement (or any agreement later) and then had your name removed, you may still be responsible and the lender could try and collect from you. Also, if the lender 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 lender coming after you, it's best to speak with a professional to find out what defenses you may or may not have. In many foreclosure situations, you may be able to save the house, with a repayment plan, or loan modification. There are also several legal "loop holes" for people in this situation that can help homeowners stay in the house much longer.

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

If you want to try and save the house, adding your name to the mortgage may be a legitimate way to get approved for a loan modification. This is when the terms of the mortgage are changed and the payments can be significantly lowered. The reason adding your name to the loan may help is because your added income may be enough to make the house affordable. But this is a drastic step to take and could be dangerous if the mortgage modification is not 100% approved and affordable. Make sure that you always speak with a professional before making this decision.
Nick writes daily articles specializing in how you can save your home from foreclosure while there is still time left before a sheriff sale or eviction. Learn to defend the bank's attempts to take your home, find a reputable attorney, delay a sheriff sale or eviction, qualify for a foreclosure loan program, and put together a reasonable solution that will let you keep your property from being sold out from under your feet. Visit his site to read more about your options to avoid the loss of a home and understand more about how and why the real estate market has been collapsing for several years now: http://www.yousaveforeclosure.com/