Many homeowners end up in situations when their name is on the title of a home, but not the loan. When these properties go into foreclosure, homeowners in this situation always contemplate how the foreclosure will effect their credit. Another fear is that the bank can sue them to repay the loan because their name is on the deed.
There are also many scenarios where co-signers are not on the deed, so they assume they can't be hurt from the foreclosure. In the case of the co-signer, they need to be very concerned, because they are 100% responsible for repaying the mortgage. The bank can sue them for a deficiency judgment and the court can potentially require them to pay back the mortgage. If you are a co-signer, stop reading now and find assistance immediately; you need it! Otherwise, keep reading.
I've been working with foreclosure victims facing. In general, the biggest downside to foreclosure victims in this situation is that they will lose the home and any equity they have in it.
In most scenarios, if you never signed an agreement to pay the mortgage, the bank will not be able to get a judgment or lien against you. They may try to call and threaten you, or send collectors after you, but when all is said and done, you are not required to repay a mortgage you never agreed to.
But, If you agreed to the original mortgage agreement (or any agreement later) and then had your name removed, you may still be responsible and the bank could try and collect from you. Also, if the bank paid taxes on your behalf, I would expect them to try and collect them from you, but I don't think any court would allow them a lien or judgment.
If you have found yourself in this situation and you're worried about the bank coming after you, it's best to speak with a foreclosure expert to find out what choices you may or may not have. In many instances, you may be able to save the home, with a repayment plan, or loan modification. There are also several legal "loop holes" for people in this situation that can help foreclosure victims stay in the home much longer.
Even if your name is not on the mortgage, make sure to do plenty of research so you know about all your options.
If you want to try and save the home, adding your name to the mortgage may be a good way to get approved for a loan modification. This is when the terms of the mortgage are changed and the payments can be drastically reduced. The reason adding your name to the mortgage may be helpful is because your additional income may be enough to make the home affordable. But this is a drastic step to take and could be dangerous if the loan modification is not 100% approved and affordable. Make sure that you always speak with a professional before making this decision.
Author Resource:-
Nick publishes articles on the ForeclosureFish website to provide foreclosure help and information to borrowers in need of assistance. The site examines numerous options to save a home, including deed in lieu of foreclosure, filing bankruptcy, short sales, defending foreclosure in court, and more. Visit the site for an e-book explaining the basics of foreclosure and how to stop the process: http://www.foreclosurefish.com/
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