My mom is potentially about to foreclose on a property she owns. However, my husband and I decided to buy a house but we couldn't qualify on our own for the loan so my mom offered to cosign on the loan for us so that we could qualify. At that time she had great credit (770 credit score) and so we qualified for the loan. I am wondering if the foreclosure goes through on her property, with her being on the title to the home we now own, can the bank for the foreclosed property come after our house?
If so, how can I get her name off the title to protect our house and still let her name remain on the mortgage note?
Thanks
2006-12-05 06:00:13 · 7 answers · asked by waycia 1 in Business & Finance ➔ Renting & Real Estate
You need a real estate attorney FAST asking this question here is a waste of time real estate law varies from state to state. Hurry!
2006-12-05 06:09:53 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Yes and no to answer your question. Once she is foreclosed upon the bank will sell the home. If there is a balance then they can obtain a judgment in court for the balance. Any judgment can be placed on any property that she owns. To get her off the deed of trust will require that a quit claim deed be prepared and executed and placed in the book and page in the registers office. You should probably refinance the note and take her off the note completely. She NOW has terrible credit with a pending foreclosure on her credit file. Start this today and move as swiftly as you can. If a lender can prove that this was done in avoidance they may still have a claim for any balance especially if she files a chapter 7 after the foreclosure for any $$ owed. She may wish to file a Chapter 7 and include this property if she wants to loose the home. She can also file a chapter 13 in order to save the property.
Good luck to you.
I am a mortgage banker in Tennessee.
2006-12-05 06:10:16 · answer #2 · answered by golferwhoworks 7 · 0⤊ 0⤋
DO NOT LISTEN TO WHAT ALEGNA HAD TO SAY - SHE IS ABSOLUTELY WRONG. YES, TWO DIFFERENT LOANS, BUT THE BANK CAN GET AN ORDER TO TAKE ANYTHING THEY WANT FROM YOUR MOTHER WHETHER IT'S MORTGAGED THROUGH A BANK, OR 100% OWNED.
Absolutely - they can, and probably will try to take your house to make up for the money your mother made them lose. If they haven't put a freeze on assets yet - hurry and try to Refinance the house you are in, taking your mother off from the note.
She could also sign off on the home - deeding it over to you. You can find the needed paperwork and more information about this on my website - My program includes all the information you are looking for, along with the forms to make it all happen.
My program can also get your mother out of foreclosure so that she isn't left homeless with horrible credit!
http://www.learntofliphouses.com
Adam Monforton
2006-12-05 06:03:52 · answer #3 · answered by p3mofo 2 · 0⤊ 0⤋
That wont be necessary. Each home is encumberred by two separate loans. So, if you're paying your mortgage on that home, they have no reason to want to take that house. You probably dont have the same bank anyway, but that's beside the point.
Two totally separate loans, two different houses! You have absolutely nothing to worry about, unless you start to default on yours!
When after a loan has closed, the bank does not care too much who's responsible for the loan and who's on title. Their collateral is the property! Needless to say, you can all remove yourselves from title, and add Brad Pitt on...its not going to matter to the bank! It's the house they want, not people in it or on it!
2006-12-05 06:09:34 · answer #4 · answered by ALEGNA 3 · 0⤊ 0⤋
Yes they can foreclose the property, Remeber the lender's recourse for non-payment is foreclosure and the sale of the property to recover the loan they gave you.
What you have in mind is right purchase the house with a new loan and pay-off the loan that is in default...
If you are in California we can help you with this one, and we can close quickly.
2006-12-05 06:12:55 · answer #5 · answered by rmijares 2 · 0⤊ 0⤋
I don't think you should worry, but if more is owed on the home than it's worth , they could possibly put a lien on her assets
is there anyway she can get out of the home without foreclosure? there are ways to do this, possible short sale, contact the bank etc
2006-12-06 22:46:07 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Your cousin can promote her 50/50 percentage contained in the resources yet no longer the entire living house in the experience that your call is on the mortage as your cousin needs your signature on the sale contract. communicate to the genuine resources brokers to get it got rid of. Who quite might want to opt for to purchase 0.5 of a house.
2016-11-23 18:22:07 · answer #7 · answered by ? 4 · 0⤊ 0⤋