Posted on: 18th Sep, 2010 04:35 pm
I have been reviewing loan and closing documents and I want to know how this will affect my credit: my husband signed the note alone, I signed the mortgage, but the deed was first recorded in his name alone. Later, three months, my name was added to the deed. It seems to me that I couldn't have signed a mortgage for a property of which I wasn't the purchaser at closing. Maybe I am misunderstanding the mortgage document and what it does. The title company messed up the first closing then two weeks later came back and asked my husband to sign new paperwork, which he did, not wanting to get the young girl in trouble for making mistakes on the first closing. If he had known how it would change things for me now, he would have looked out for me, not her. I didn't sign the first time.
I expect foreclosure soon, although I've tried desperately to get a loan mod. I was told I qualified, but they kept losing documents and I kept resending them. After 20 months of waiting for a final word, I was told that I had to start over as I had never been "coded" for a loan mod. I was granted a six-month forbearance, but it expired and I kept paying, as the paperwork I got with the forbearance said the bank would be working on a permanent solution while I was in forbearance. I had applied for a loan mod, but got a forbearance.
I am very concerned about my credit as I know how it affects EVERYTHING, not just a loan. Insurance rates are higher, jobs depend on credit reports, etc. This is a mess we homebuyers (clearly, it's a lie to call us homeowners) find ourselves in.
I expect foreclosure soon, although I've tried desperately to get a loan mod. I was told I qualified, but they kept losing documents and I kept resending them. After 20 months of waiting for a final word, I was told that I had to start over as I had never been "coded" for a loan mod. I was granted a six-month forbearance, but it expired and I kept paying, as the paperwork I got with the forbearance said the bank would be working on a permanent solution while I was in forbearance. I had applied for a loan mod, but got a forbearance.
I am very concerned about my credit as I know how it affects EVERYTHING, not just a loan. Insurance rates are higher, jobs depend on credit reports, etc. This is a mess we homebuyers (clearly, it's a lie to call us homeowners) find ourselves in.
Hi Zionelle,
If your name is on the mortgage and the property deed, then the foreclosure will badly affect your credit report. It will lower your score by 250 points and will remain on your credit report for the next 7 years. Moreover, you will be liable for paying the balance dues resulting from the property sale. I would suggest you to keep in touch with the lender and reapply for a loan modification so that you can get affordable rates and terms to pay off the loan.
Thanks
If your name is on the mortgage and the property deed, then the foreclosure will badly affect your credit report. It will lower your score by 250 points and will remain on your credit report for the next 7 years. Moreover, you will be liable for paying the balance dues resulting from the property sale. I would suggest you to keep in touch with the lender and reapply for a loan modification so that you can get affordable rates and terms to pay off the loan.
Thanks
Zionelle - You may have some hope! Three of the major lenders are FHA, Fannie Mae and Freddie Mac and they each have an exception to damaged credit if you can prove "extenuating circumstances."
Fannie Mae and Freddie Mac do not originate loans. They buy them from private lenders if the private lender complies with their respective lending qualification criteria. Both Fannie Mae and Freddie Mac guidelines penalize potential borrowers if there is “significant derogatory†event on their credit report, such as a short sale, deed-in-lieu of foreclosure, foreclosure or bankruptcy by imposing a “waiting period†before a borrower becomes eligible for a new loan that is sellable to Fannie Mae or Freddie Mac. Waiting periods are measured by the time elapse after a significant derogatory credit event.
For example, as of September 20, 2010, Fannie Mae has a waiting period of 7 years after a foreclosure. However, if a borrower can show extenuating circumstances, the waiting period can be reduced to only 3 years!
According to Fannie Mae Selling Guidelines effective as of September 20, 2010, Extenuating Circumstances is defined as:
As you are going through this anguish, keep copies of documentation that illustrates factors that are contributing to your current financial struggle and need for help. This documentation may include husbands death certificate, explanation of your hardship (write down the details of your current financial troubles), current pay stubs, current bank statements, current financial budget statement, and tax returns. In addition, it may include your listing agreement and short sale denial, or correspondence from your lender denying your loan modification workout - if applicable.
Instead of trying to remember and recreate the struggle you are going through now, simply keep copies of your paperwork and tuck them away for that day in the future when you need to provide proof of your extenuating circumstances.
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Fannie Mae and Freddie Mac do not originate loans. They buy them from private lenders if the private lender complies with their respective lending qualification criteria. Both Fannie Mae and Freddie Mac guidelines penalize potential borrowers if there is “significant derogatory†event on their credit report, such as a short sale, deed-in-lieu of foreclosure, foreclosure or bankruptcy by imposing a “waiting period†before a borrower becomes eligible for a new loan that is sellable to Fannie Mae or Freddie Mac. Waiting periods are measured by the time elapse after a significant derogatory credit event.
For example, as of September 20, 2010, Fannie Mae has a waiting period of 7 years after a foreclosure. However, if a borrower can show extenuating circumstances, the waiting period can be reduced to only 3 years!
According to Fannie Mae Selling Guidelines effective as of September 20, 2010, Extenuating Circumstances is defined as:
As you are going through this anguish, keep copies of documentation that illustrates factors that are contributing to your current financial struggle and need for help. This documentation may include husbands death certificate, explanation of your hardship (write down the details of your current financial troubles), current pay stubs, current bank statements, current financial budget statement, and tax returns. In addition, it may include your listing agreement and short sale denial, or correspondence from your lender denying your loan modification workout - if applicable.
Instead of trying to remember and recreate the struggle you are going through now, simply keep copies of your paperwork and tuck them away for that day in the future when you need to provide proof of your extenuating circumstances.
[Promotional content deleted as per forum rules. Duplicate content converted into image. Thanks.]