I'm on the title but not the mortgage how do i deal with a foreclosure?

Question

I currently am living in a house in which my name is on the title, but not the mortgage. The mortage holder no longer resides in the residence (due to a peace order).The mortgage holder is currently in default of the loan, and the bank will begin foreclosing proceedings in January. What are my options, being that I have an equitable interest in the home? Can I appeal the foreclosure due to this fact or do I have to sue the current mortgage holder? Last but not least how much longer can i expect to live in the home?

I'm on the title but not the mortgage how do i deal with a foreclosure?
I currently am living in a house in which my name is on the title, but not the mortgage. The mortage holder no longer resides in the residence (due to a peace order).The mortgage holder is currently in default of the loan, and the bank will begin foreclosing proceedings in January. What are my options, being that I have an equitable interest in the home? Can I appeal the foreclosure due to this fact or do I have to sue the current mortgage holder? Last but not least how much longer can i expect to live in the home?
ADDED: the state i live in is maryland and i was added to the title after the house was purchased by the owner himself.

Answer 1

Since your name isnt part of the mortgage , I dont think its any different than if a landlord defaulted on a loan...the renters wouldnt have any say...the fact that your name is on the title...most judges would say you shouldve confirmed whether or not payments were being made if you were that concerned....length of time will depend on where you live...in Michigan, you have about 9 months after the sheriff's sale.

Answer 2

The bank does have the right to begin foreclosure proceedings. However they can only foreclose on the mortgage holder's interest in the property. For example if you and the mortgage holder own it equally, then the bank can only foreclose on a 1/2 interest of the property. It appears that someone made a mistake when searching the title before the mortgage was closed. Most banks require that each titled owner sign the mortgage.

Your best interest is to hire an attorney to work with the bank to get the matter resolved. If the bank proceeds with the foreclosure then you will mostly likely have to pay them in order to become the full owner of the property.

Answer 3

So much depends on the state in which you live since different states have different foreclosure procedures. I would advise you to contact an attorney, have the attorney contact the bank and see if they are willing to work out something with you. If you can qualify for a mortgage yourself, and if you can get the mortgage holder (your husband perhaps?) to execute a quit claim deed in your favor or whatever the attorney advises, then you could become sole owner of the property and he could avoid a foreclosure in his name. The foreclosure should not affect your credit since you are not actually the mortgage holder of record. Banks are frequently willing to do a work out with an owner which can involve anything from taking the amount in arrears and putting it on the other end of the loan, possibly accepting partial payment and then adding a portion of the additional arrearage onto subsequent payments - or any number of other work out plans. The first thing that you need to realize is that the bank does not want to own your house. They want MONEY. If they can be assured of getting it from you, then they will work with you.

As far as the other owner working with you, it would be in their favor to avoid foreclosure. Since there is a peace order involved, I would have my attorney contact them to work out the details. The bank will only be able to deal with you if there is something involving him giving up rights or if they foreclose on him and sell the house to you. Usually the house that is sold in a foreclosure sale is sold "at the court house steps" or some other designated place to the highest bidder, so it is in your best interest to work something out before foreclosure.
You, of course, could prevent the foreclosure by paying the arrearage yourself, since you have an interest in the property, but it still would remain a half interest in the other parties ownership, and if there is a peace order involved, it is probably not your wish to continue to own a home with this person.

Attorney first is the best advice I can think of. Tell him or her your wishes and get some good advice.
Good luck.

In answer to the comment that "he cannot imagine how you could be on the title but not the mortgage, that is very simple" A person can take deed to a property and be on a mortgage themselves, then after they take deed in their name to the property, if they marry, or if they want to deed part of that property to someone else they can do that, but they remain on the mortgage alone. In my state, Arkansas, if a married person buys property, gets a mortgage on a home, the spouse has to sign the mortgage, even if they have not applied for the mortgage and it is being purchased as "seperate property". The signature allows the mortgage holder to foreclose without having to go to court, and "sue" to foreclose. It does not necessarily mean that the second party is responsible for the mortgage. This situation and many more like it depending upon the state is why you need to find an experienced, knowledgeable attorney.

Answer 4

Is there any equity in the home? Your only option is to sell it, and get half of any cash at closing.

You have no standing to sue the mortgage holder, being that you have no liability for the debt.

DO NOT, REPEAT, DO NOT BRING THE MORTGAGE CURRENT!!!!!!!!!

Whoever suggested that is out of their mind. What happens after that? You keep paying someone else's debt for the next 30 years? Hell no.

Start looking for another place to live. You've obviously been living in that home free of charge for a few months now, since you obviously aren't paying the mortgage yourself.

Depending on what state you are in, you may have as much as 6 months AFTER the sheriff's sale before you have to vacate the home. Find a local ACORN branch or non-profit housing agency who can tell you what your rights are in your state. The bank will not tell you, and they will always make it sound like you have to pack up the day the sheriff's sale happens. This is not true in most cases.

Answer 5

From what I know (but not sure), if you are also listed on the title, they can't just throw you out. When they sheriff sale the property, whoever buys it from the auction place or bank has to 'throw the people out'. Sometimes if you pay them what they paid for the property, they'll give you the place. From what I know, the person who buys the proeprty has to evict the people on it, or get a sheriff deputy to try and do it. I'm sorry to hear about your trouble, that really sucks! Many people are getting foreclosed these days.

I don't know which state you live in, so the laws are different state by state I think.
Info about forclosure options: http://www.larcc.org/pamphlets/housing/about_foreclosure.htm

how foreclosure works: http://www.consumerlawoffice.com/Consumer_Information/Foreclosure/foreclosure.htm

Good luck, I hope you don't have to move. Hope these help. :)l

Answer 6

You have no recourse. As an owner, if you want the house you will have to pay for it. You can sue the other owner, but what's the point? The bank is in effect doing that already. Your only hope is a quit claim deed from the other owner and bring the payments up to date. The time it takes the bank varies from state to state. I would guess about 3 months.

Answer 7

This one is probably going to take a lawyer to straighten out. But I cannot imagine how your name could be on the title but not on the mortgage -- a mortgage holder always wants everyone on the title to be liable. And that's why you need a lawyer.

Answer 8

Your options are dependant on how you share title. The foreclosure timeline is dependant on your state. Either provide more details or speak with a lawyer (or both).

Regards

Answer 9

i'm sure the bank would like to be paid. talk to them. maybe you could buy the mortgage for less as it is going into foreclosure. could save them some hassle and you some money.

Answer 10

Your best bet would be to contact the lender and bring the mortgage up to date.

Beyond that, consult with an attorney. Nobody here can give legal advice. And you appear to need it.