Will my husbands foreclosure affect my credit or new home?

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My husband has a home thats currently about to go through foreclosure. He had the home before we married and I am not on the loan or deed. He has owned it for about 5 years and he is renting it out but the tenants got behind causing the foreclosure process. How will this foreclosure affect my credit and new home. We have no joint accounts and he is not on my home loan but is included on my deed..... I purchased this home last year before we got married...any advice? Sad

jameshogg · Posted: Thu Oct 23, 2008 10:10 pm Post subject:

Hi chanel!

I don't think the foreclosure will affect your credit in any way. This is because you are not on the property deed or on the mortgage. So you will not have to worry about that.

However, I would like to ask you if the home is already foreclosed or not. Has the lender already sent the foreclosure notice to your husband? If not then he may try for a deed-in-lieu foreclosure or a short sale. This will have a less impact on his credit score.

Thanks.

Caron

Hi Chanel,

Welcome to our forums.

Since you're not on the loan, therefore your credit won't be affected if your husband's home is foreclosed. Also, I feel it's good that you have no joint accounts. So, your accounts won't be affected in any way. However, if there's a deficiency payment required by the lender and your husband fails to pay it off, well then chances are that the lender may place a lien on other properties owned by your husband. In that case, it may affect your new home as because he's on the deed to your new home.

What I'll suggest is, you have a talk with him regarding what he plans to do so that he could avoid foreclosure. Ask him to talk to the lender's loss mitigation department. Perhaps they can help him out with a loss mitigation option such that he'd be able to keep the house as well as pay off the mortgage gradually.

Let us know what he has to say. Smile

Good luck

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