Question on Home Forclosures?

Question

My husband is the secondary signer on a house that him and hi mother went in on together. The house is going to be forclosed on within the next couple of weeks and there's nothing we can do about it. I was wondering how this will effect his credit seeing as how he is not the primary signer and also what effect this may have on my credit if any.

We were married after all the paper work was signed. He was also never notified by the mortgage company that the house payments were so far behind.

Answer 1

I'm so sorry. This is going to have a huge impact on your husband's credit. It will only effect you by default.

Foreclosure Is Unavoidable – Now What?
If foreclosure actions have already begun and there is no hope of keeping your home, Andrew Housser, co-CEO of Freedom Financial Network, LLC in San Mateo, Calif., a company that provides comprehensive consumer debt resolution services, offers two action steps you should initially take:

Contact a reputable foreclosure assistance organization. If you have already fallen behind on your mortgage payments and are facing foreclosure actions from your lender, it would be wise to contact a foreclosure counseling organization right away. Depending on the state in which you live, foreclosure proceedings can move quickly. The earlier you start negotiating with your lender, the better chance of finding a solution to save your home. Make sure any organization you do business with has a strong Better Business Bureau (BBB) rating before entering into any agreement with them. The options available to you are similar to the following: forbearance, loan modification, deed in lieu of home sale. At this stage of the foreclosure process, refinancing will probably not be an option because of the delinquencies on your payments.
Watch out for equity skimmers. If your house is facing foreclosure, you will probably receive solicitations from several people who are looking to “help” you prevent foreclosure by offering to sell your home for you, or by taking ownership of your home. In most cases, these solicitations are scams trying to take advantage of people in difficult situations. The perpetrators are trying to take the equity you have built up in your home right out from under you.
Also important to keep in mind, says Housser, is “when a mortgage goes into default, lenders will not accept partial payments.” For instance, if you are three months behind on payments and send in a check for $300 but you actually owe $4,200, the lender will usually send the check back. “This scares a lot of clients,” he says. “It doesn’t mean you’ve already lost your home; it means you need to negotiate something with them.” If you are in some kind of temporary situation, then there are ways of working with your lender, he explains. “However, if it is going to be a permanent budget shortfall that is never going to be cured, then that is a problem and you probably will not be able to stay in the home.”

Answer 2

Generally speaking, a co-signer is fully liable as if they were the primary signer. (If you have a conventional loan through a typical mortgage company this will almost certainly be true.)

This is going to hammer his credit, hard. A home foreclosure is slightly better than a bankruptcy...but it's going to make a mess for a while.

You and your husband have separate credit files. In the purest sense it won't affect you at all. However, when you go to make a major purchase, like a house, they aren't going to pull your credit report and not his. (This is particularly true in a community property state.)

If you own your own home already, and don't plan to move or refinance, you can probably weather this without too much pain. But, if you have any major credit challenges coming up in the next few years you really might want to make absolutely sure you can't deflect this foreclosure.

Answer 3

it will greatly affect his credit, even if he was not the primary. Being a secondary signer means you are willing to take responsibility if the primary can't.

A foreclosure is the worst thing you can have on your credit report, as lenders feel your house payment is the first thing a person makes, and if you can't make that, you won't make any other payment. However his report will show him as a secondary, which will help a little.

It should not affect your credit at all.

I recommend your husband contact the credit reporting bureaus, such as Equifax, TRW, etc, and have a statement put on the end of the bureau that explains the foreclosure. Anyone can write up to a certain number of words ( I can't remember the limit) to explain negatives on their bureau and it goes a long way.

Answer 4

Your husband signing as a secondary signer was a guarantee to the bank that if the primary signer couldn't make payments, the secondary would to make sure that the bank gets their money (either that or sell).

This is going to negatively impact your husbands credit, in a similar way to a bankruptsy, and he definitely won't be able to get a mortgage (not sure of what the term is).

It won't impact your credit in any way.

Answer 5

He was probably notified to make payments and is equally responsible for the debt. As a result, he'll be equally reported for the delinquency process. This will affect his future credit reports and yours when you are applying jointly for credit.

Answer 6

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Answer 7

ask the bamk for info on a short sale if the bank agrees you wont have a forclosure on your credit report ive done it for many people already if your in nj or pa i may be able to help [e-mail]

Answer 8

Could you possibly find a buyer before the foreclosure? Some people specialize in it.

Answer 9

Lori is right on the money!

So sorry - this will affect you for several years to come.