Posted on: 21st Jan, 2009 10:13 pm
My house is going to foreclosure. My name is on the mortgage but not on the deed nor the note, am i liable for the payment? I just check my credit report it is not affected at all, does that mean i'm safe and the bank won't come after me??? I am in Michigan. Thanks.
Hi lilystopera
If your name is on the mortgage, then a foreclosure will badly affect your credit. It will lower your credit score by 250 points. Though your credit report is not affected right now, once the lender reports the foreclosure to the credit bureau, your credit will be affected.
Thanks.
If your name is on the mortgage, then a foreclosure will badly affect your credit. It will lower your credit score by 250 points. Though your credit report is not affected right now, once the lender reports the foreclosure to the credit bureau, your credit will be affected.
Thanks.
Lily, let me clarify to make sure I understand you. When you state mortgage you do not mean the actual loan. Correct? In florida there is the Promissary Note, the deed and the mortgage. Married couples are required by law to sign the mortgage simply for information purposes. This way were a lender to foreclose on a property they by law need to serve all parties not just the one on the loan that a foreclosure is to take place. There are no ramifications if you signed this paper its only if you are on the actual loan that you will see it on your credit.
Hi Niicss and stardove60, thank you for the responses.
Well, I am in Michigan, I do not know anything about mortgage. When my husband and I purchased this house, I signed the mortgage, somehow I am not on the deed nor on the promissory not. The question is, if the house is completely foreclosed, will it affect my credit (some say yes and some say no, im confused now) and after the bank takes the house back, will they come after me to take the money out of my bank account even my husband's name is not on my account?
Well, I am in Michigan, I do not know anything about mortgage. When my husband and I purchased this house, I signed the mortgage, somehow I am not on the deed nor on the promissory not. The question is, if the house is completely foreclosed, will it affect my credit (some say yes and some say no, im confused now) and after the bank takes the house back, will they come after me to take the money out of my bank account even my husband's name is not on my account?
the other thing is, i think my husband refinanced mortgage two years ago, I didn't sign anything, does this make any sense?
Hi lilystopera,
You have mentioned that your husband has refinanced the property 2 years back. Check out the mortgage docs and see if your name is on it or not. If your name is not on the mortgage docs, then you are not responsible for the mortgage payments neither will your credit be affected if the property goes into foreclosure.
Thanks
You have mentioned that your husband has refinanced the property 2 years back. Check out the mortgage docs and see if your name is on it or not. If your name is not on the mortgage docs, then you are not responsible for the mortgage payments neither will your credit be affected if the property goes into foreclosure.
Thanks
The reason the bank made you sign the Mortgage, is to convey your marital insterest in the property, so that they would have a valid mortgage. That is to say if one spouse owns the real estate, and not the other, and they both live their, the non-owning souse has a presumed marital interest even though he or she is not an actual owner. That is why they made you sign the Mortgage instrument. No, they cannot sue you for any deficiency balance, or come after you for payments, since you did not sign the promissory note.
Hi Jameshogg and Bill, thank you for your responses, now I feel a little better since they cannot come after me...
Thanks everyone, I just spoke to a loan officer who is really nice, she told me that mortgage and note are different, if my house is foreclosed, only my husband's credit will be affected, and I am not liable for any of the payment. Mortgage only means that I have interest in this property and agree on the loan. I won't be affected at all.
lily, since you are an owner of this property, you are definitely affected.
you say you didn't sign the deed or the note, yet you signed a mortgage. there are usually 2 instruments that require signature (a deed and a note). a "mortgage" is simply the loan you received. the "mortgage note" is the promise to pay back the loan, and the "mortgage deed" is the instrument that is recorded in the land records.
when you became an owner, and borrowed, you would have had to agree to take measures to ensure that the lender's collateral was "kept up" and though that might not include making the actual payments on the loan, you're going to be foreclosed on as an owner of the property if they need to take that action.
foreclosure is a public record, and all public records are picked up by the credit reporting agencies, so your credit will definitely be affected by this.
you may want to speak directly with your current lender rather than those of us who are not privy to the document(s) you signed. another alternative to to discuss this with an attorney.
you say you didn't sign the deed or the note, yet you signed a mortgage. there are usually 2 instruments that require signature (a deed and a note). a "mortgage" is simply the loan you received. the "mortgage note" is the promise to pay back the loan, and the "mortgage deed" is the instrument that is recorded in the land records.
when you became an owner, and borrowed, you would have had to agree to take measures to ensure that the lender's collateral was "kept up" and though that might not include making the actual payments on the loan, you're going to be foreclosed on as an owner of the property if they need to take that action.
foreclosure is a public record, and all public records are picked up by the credit reporting agencies, so your credit will definitely be affected by this.
you may want to speak directly with your current lender rather than those of us who are not privy to the document(s) you signed. another alternative to to discuss this with an attorney.
hey gmakerley, thank you for ur response, I spoke to my bank, they told me the mortgage and the actual loan are two different things, I am not liable and my credit won't be affected.