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unique situation

Posted on: 06th Feb, 2007 09:25 am
I bought a house before I got married and now I'm in a financial struggle and am selling my house. However I have stopped making payments and plan on a short sale or foreclosure if it doesn't sell before it goes into default. My question is I am now married, but I'm the only one on the loan as I bought the house before I got married. If it forecloses, can they go after my wife at all for any money if we buy another house only in her name. We are planning on buying another house in her name before mine forecloses (hopefully it doesn't get that far and sells sooner). Can they try and attatch a lien on her house or go after her for more money? She is in no way attatched to the house or loan other than we share a checking account that we had made the payments from.

thanks...
also, when she goes to buy another house will they require my info when she goes for a loan because we are married? Someone told me that because we are married they will want my social as well, but we want to buy the new house in just her name and credit. Can we do that?
Posted on: 06th Feb, 2007 09:30 am
No, the lender can only foreclose the property on which he had the lien. He can not go after any other property your wife may purchase in future. As this property was used as collateral for the loan the lender has rights of recovering his dues only from the sale of this particular house.
Posted on: 06th Feb, 2007 09:33 am
thanks for your quick response.

we are getting a substantial tax return that's in both our names, can they try to get more money after a forclosure? If it comes down to foreclosure can a lender go after you for more money?

thanks again...
Posted on: 06th Feb, 2007 09:38 am
"Someone told me that because we are married they will want my social as well, but we want to buy the new house in just her name and credit"
Your personal information will not be required for her to qualify for the loan if she is purchasing the new house in her sole name. And if the mortgage will also be in her name only then only her credit score, income and other factors will be considered. As per laws each individual whether married or single can take a mortgage on his own, if he/she can qualify for it.

While purchasing the house also your details will not be required. The property can be purchased in her name only. Her married status can not have any affect on her purchase decision.
Posted on: 06th Feb, 2007 09:39 am
I am late at refreshing the page and didn't see your reply :)

After the foreclosure the lender can file a lawsuit for recovery of his balance dues after the sale. It is known as deficiency judgment. Before the foreclosure you should have a talk with lender and ask whether he will be going for any such measure or not.

But let me also add that foreclosure will have bad affect on your credit score. You should try if possible to have the short sale instead of lender starting a foreclosure.

Mitchel
Posted on: 06th Feb, 2007 09:50 am
"Someone told me that because we are married they will want my social as well, but we want to buy the new house in just her name and credit."
Only if you are applying for new mortgage along with your wife and want to be a co-borrower, the lender will require your information. Otherwise they will not ask for your credit score, income, social security number or anything else. All information that will be required would be related to your wife.

As Mitchel said try to avoid foreclosure as it will have negative affect on your credit score. If in future you would need to borrow on your own for some reason then you will face problems. Try to sell the house on your own as early as possible or discuss with the lender about the possibility of a short sale.

Colin
Posted on: 06th Feb, 2007 10:22 am
Would love to help with that short sale.
Posted on: 06th Feb, 2007 12:44 pm
thanks for everyones replies...

I'm definately going to try and not let it get to foreclosure, but if it does, I'm young enough and my wifes income is substantial enough to rebound quickly. I just wanted to make sure it wouldn't affect my wife purchasing another house.

thanks again everyone, you've been very helpful...
Posted on: 06th Feb, 2007 12:53 pm
Let us know if you face any other problem and we will try to help you out as much as we can.

Colin
Posted on: 06th Feb, 2007 01:05 pm
Hi Guest,

Welcome to our community forums.

The lender cannot attach a lien on the house which your wife will probably own. He will be selling off the current property in a foreclosure sale auction and try to retrieve the unpaid loan balance from the sale proceeds.

However, on account of any deficiency between the sale price and the unpaid balance, the lender may demand the deficiency from you. Or else, he may also forgive the deficiency. This will depend upon the anti-deficiency laws prevailing in your state.

Any lender should not ask about your financial information until and unless yours is a community property state, or you rely on your wife's income and credit to apply for the loan and be liable for payments. In fact lenders are prohibited by law to ask such questions to the spouse when he/she is not applying for credit.

In your situation, the lender will hopefully not enquire about your credit and financial status.

Regards,

Jessica.
Posted on: 07th Feb, 2007 04:32 am
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