Do credit agencies go after the person whose name is on the loan or the one on Title?

Question

Long story short. I have a house in Calif. that was to be shared with a real estate partner. The loan is in my name, but after some shady actions (not by me), I believe the title is now solely in his name. If I were to simply walk away from the house, would the credit agencies go after me or him? He also owns another house in Calif. Would they put a lien on his home?

Answer 1

Regardless of the shady actions, the lender would not allow the person (or people or LLC or whatever) to be on title without also being on the mortgage. While your name may be on the promissory note within the mortgage, your partner's name would also be on the mortgage as to prevent having his name in a better "position" for title to the property. This works the same way with married people. If the loan goes into default, the lender wants to make sure their interest in the property super-cedes anyone else's claim to the property.

So, the lender will first come after you, but then to anyone else who lays claim to the property. If your partner has somehow titled the property under his name without the lender's knowledge they will go after him too.

If I were you I wouldn't simply walk away, but go to your court house and find out how the ownership is recorded (mortgages are recorded). It is important to be certain of your situation. Then, talk to the bank and explain the situation to see what options exist. Often you can get out from under the situation by making that call.

Answer 2

The loan! If you walk away from a contract you signed, you will definitely be held liable.

What do you mean by "He also owns another house in Calif. Would they put a lien on his home?"

Answer 3

My concern would be that you put information on the credit application, regardless of it being incomplete. If you signed and dated it that was you agreeing to the credit check. The bigger question is, what did you actually sign with the finance manager? Do you have copies of all of those documents? Who is the loan through on those forms? Can't hurt to speak to an attorney and I would call Wells Fargo and ask to see their documentation and look for your signature. Somewhere along the way, it looks like you've been had.

Answer 4

The loan. The person on title is not personally liable. However, the property is liable and the person on title can lose the home whether or not they are on the loan. The lender can not affect the credit of anyone not on the loan.

Here is some additional info. Hope this helps.

Answer 5

They would go after you, since you are on the loan.

However, I would contact the lending company. They won't like that the title is in his name if he's not anywhere on the loan. They may be inclined to help you fix that (especially if his dealings were shady). Once the property is back in your name, you may be able to sell it to re-pay the loan.

Answer 6

The loan is in your name, but title is in someone else's name. For that to happen, either you did sign something to do it, or someone forged your signature AND got a fake ID and pretended to be you at closing.

So either you did sell the house, and your mortgage company can call the note due in full for violation of the due on sale clause, or your partner is on his way to prison.

Answer 7

to be on the title you must be on the loan.

Simply call the bank and ask them who else is on the loan with you. Go to the court house and verify ownership of the property.

Credit people are concerned with the loan contract.

Answer 8

They go after the mortgage holder. Why in all that is good and decent would you agree to carry a note on a property that you do not share title??????

The only way they would lien your partner's prim. res. is if he is a guarantor on the note....if not, then recourse for the bank lies solely with you.....

Answer 9

They go after the person that appears on the loan contract.