Posted on: 12th Aug, 2009 09:55 am
My wife is the sole party named in the loan and title. we have never been late on payments and are -140,000 in equity now with the current market. I am looking into a purchase of a bigger home with my parents, my wife would not be listed on that loan or title.
If we can not rent our current home and it falls into forclosure can the bank come after me and/or my parents because of the new home?
Should we do deed in lieu? we have 2 loans. 80/20, interest only on the current home.
If we can not rent our current home and it falls into forclosure can the bank come after me and/or my parents because of the new home?
Should we do deed in lieu? we have 2 loans. 80/20, interest only on the current home.
best option woudl be to do Deed in lieu. Bank will write of the difference in the amount and you will be free
to djrdubb,
since the loan and the title are solely in your wife's name, only her credit will get affected if the house goes into foreclosure. your and your parents' credit should be fine. as your current home is underwater, the lender can come after your wife for the deficiency. but they will not be able to come after you and your assets. thus, if you buy the new home and do not put your wife's name on the loan and the title, your new home should be safe from your existing lender. your wife can do a deed in lieu of foreclosure on the current property. she needs to talk with the loss mitigation dept. of the mortgage company.
since the loan and the title are solely in your wife's name, only her credit will get affected if the house goes into foreclosure. your and your parents' credit should be fine. as your current home is underwater, the lender can come after your wife for the deficiency. but they will not be able to come after you and your assets. thus, if you buy the new home and do not put your wife's name on the loan and the title, your new home should be safe from your existing lender. your wife can do a deed in lieu of foreclosure on the current property. she needs to talk with the loss mitigation dept. of the mortgage company.
talk to lender then only come to any conclusion.