Title/Deed is under both of our names. If we foreclose the 1st home, will my credit rating also be affected? How will it affect our 2nd property since he's name is also on that property?
2007-08-25 06:31:46 · 5 answers · asked by Darn 2 in Business & Finance ➔ Renting & Real Estate
Both properties are in So. Ca., 2 houses in the 2 our neighbors (in the 1st property) are foreclosed. Owe 345K, CMA=235K. We're getting it rented for $1500. Our mortg paymt is $2500 (non-impounded)=$1000 short. 1st and 2nd property has 2 loans (80/20). On the 2nd property, 1st loan is 5 year fixed and 2nd loan/HELOC is ARM/30 year term. Payments are still current, been borrowing money from relatives to stay current. Any advices will be appreciated. Thanks.
2007-08-25 07:35:25 · update #1
pretty sure they will both affect you if youre legally married.
2007-08-25 06:39:04 · answer #1 · answered by Anonymous · 0⤊ 2⤋
Yes, because you are married, each of you impacts the other.
Why would you let it go to foreclosure? Have you spoken with the lender about other alternatives? Such as a 'short sale", or deed in lieu of foreclosure? Why not consider renting it out until the market improves. Well there are a couple of things the lender can do if you foreclose; one is to file a personal judgment lien on both of you or file a 1099 Income Tax form to the IRS for the balance owned, which in effect grosses up your income for the year and you have to pay taxes on that.
So consider carefully. Good Luck!
2007-08-25 06:39:29 · answer #2 · answered by Anonymous · 0⤊ 1⤋
A foreclosure is only allowed to be reported on the credit report of the person that has actually obligated themselves on the note (this may be different in a community property state) A foreclosure would not directly impact the second property owned separately (unless it was cross collateralized)
Hope this helps
2007-08-25 06:42:20 · answer #3 · answered by Etta P 4 · 0⤊ 0⤋
Foreclosure will affect whomevers names are on it and veryyyy adversely .
The 2nd property's loan should not change if it is a true 15 , 20 or 30 yr fixed .
However , if it is an ARM on the 2nd property , they may use your new FICO when the rates reset .
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2007-08-25 06:38:07 · answer #4 · answered by kate 7 · 0⤊ 2⤋
If the deed and all legal flow papers have been signed over to you, they have been additionally dated. on the 2d of signature, you ought to very own the valuables. He does not. At that factor the line of credit is invalid, as he now no longer has the "collateral". for this reason, apparently that he KNOWINGLY borrowed against a line of credit making use of collateral HE does not very own, and had finished awareness that he does not very own interior the very very close to destiny. it is termed FRAUD; it is seen legal. call YOUR legal professional at present, and talk this rely. apparently as in the adventure that your husband ought to be arrested, and you may owe the economic business enterprise no longer something. something of it is not your concern. call YOUR legal professional NOW! continuously seek for qualified legal advice out of your RETAINED legal professional, no longer FROM a set OF NOBODIES ON YAHOO!!!!
2016-11-13 09:33:03 · answer #5 · answered by jannelle 4 · 0⤊ 0⤋