Posted: Sat Jul 25, 2009 12:29 am Post subject: Impact of the home foreclosure
Our home is bought as soon as we got married as my husband single property. I am not on loan or on title. I live in CA. What is the impact of our home foreclosure on my credit history ? Can I buy a home in the future ? I spoke with one of the real estate agent .she mentioned Banks check my husband credit history also even I am applying for loan with my income and not including my husband name or his income. Is it true ? Not that I am looking for an house..I would like to know the impact of the home foreclosure. Thanks in advance. _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
Most of the time banks do check the credit history of the spouse in order to make sure whether is there any delinquency or bankruptcy on the spouse's name.
and this remark is considered as negative.but if the spouse is not a co-applicant on the mortgage (future) then I do not think bank will even give some importance to this point.
But it is true that credit history of the spouse is checked when the loan amount is very high.
Since you are neither on the loan nor on the title, the foreclosure will not affect your credit in any way. This implies that you can definitely go ahead and purchase a home in your name in future. In some states, specifically in community property states) the lender can check the non-purchasing spouse's credit history before approving a borrower's loan. In some cases, they can even use the non-purchasing spouse's debts could be used to determine the borrower's qualifying ratios like the DTI ratio.
However, there's no such underwriting guideline that allows the lender to reject the borrower's loan application, if the non-purchasing spouse has some negative items in his/her credit. Thus, I don't think the foreclosure in your husband's credit report will affect your chances for a loan in any way.
manoj_gopale
