My neighbor wants to put the title of their home into her name, let the home go into foreclosure and then buy a home in her husband’s name. I tried to explain why I thought that would be a bad idea, but it was hard for me to think about all the different reasons why. Any ideas?
Besides- it would be bad for their credit for 7-10 years.
2007-11-29 05:33:30 · 8 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Wow, your neighbors sound like real geniuses.
I think they bank would cry fraud and sue them. It wouldn’t be hard to figure out their plan. I don’t know what specific laws they’re breaking, but when I signed my mortgage docs, I had to put my signature on an uncountable number of lines swearing that I wasn’t LYING to them. This sounds like a HUGE lie to me!
If the husband’s name is on the mortgage when the foreclosure happens, there’s no way in hell that he’ll be able to qualify for a new mortgage to re-buy his house. Furthermore, I’d wouldn’t be shocked if the loan underwriters didn’t cry fowl when the guy tries to finance the house that he just took his name off! (IF they made it that far.)
Has the moron even considered that someone else could buy it? They could lose it more than one way. First, someone could show up at auction and pay cash for it, completely eliminating them from the transaction. If it doesn’t sell at auction and is listed with an agent, they have no guarantee that someone else wouldn’t make a higher off than they.
Oh, and they would have to either move all of their crap out only to move it back in. Or leave it all and risk someone else buying their house, thus losing all of their stuff.
2007-11-29 05:48:51 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Just to add credence to the prior posts, I'd venture that your neighbor is more than a few straws short of a full bale. This is NOT going to work. If the husband is the only one on the mortgage documents, his credit will be thoroughly destroyed, and any purchase of a different home would have to be on the wife's name and credit only. The husband isn't going to qualify for nearly a decade, after a foreclosure.
In response to Terry's thoughts, you can dispute a foreclosure all you want with a credit bureau. It's a matter of public record and can be EASILY verified. It's not going to disappear.
2007-11-29 14:43:25 · answer #2 · answered by acermill 7 · 0⤊ 0⤋
Bad idea and pointless. It won't help her get the house and will trigger the "due on sale" clause in your mortgage.
It won't hurt their credit just to be on the deed, since they aren't responsible for the mortgage. But they may be named in the foreclosure lawsuit as potential parties with an ownership interest.
Just sell the home to your neighbors outright, or have them try to purchase it after the sheriff sale. They might get a better deal then, if bank loses a lot of money on the auction.
2007-11-30 14:38:28 · answer #3 · answered by Anonymous · 0⤊ 0⤋
As far as the credit being trashed, everyone forgets (or doesn't believe) that you can work with a credit repair company and have the bad marks removed way before the 7-10 year mark. I'm living proof and many of my clients have had bankruptcy removed also. It's all spelled out in the Fair Credit Reporting Act, allowing you to dispute negative items. You can get the credit repair details at;
http://www.stupidhomeowner.com
2007-11-29 14:38:01 · answer #4 · answered by Anonymous · 0⤊ 0⤋
I can think of a dumber stunt, doing that, then trying to buy the house back by borrowing money from your 401k.
No that will not work, plus it takes a long time for a house to go through the foreclosure process.
2007-11-29 13:44:36 · answer #5 · answered by Ryan M 3 · 0⤊ 0⤋
I can't think of a dumber stunt. First off, assuming that the mortgage is in both of their names, both of their credit records will be trashed. It's the names on the note that matter, not the names on the deed. Lots of luck buying another home then!
2007-11-29 13:39:43 · answer #6 · answered by Bostonian In MO 7 · 3⤊ 0⤋
if she is on the mortgage to begin with he would have to be able to refi the house into his own name on his own first...also when title was pulled for the new house this action would be seen and frowned upon by the new mortgage company....the foreclosure will haunt them for 10 years...why not just sell the house at a very cheap price to pay off existing mortgage then buy another one..the right way!
2007-11-29 13:42:06 · answer #7 · answered by becca9892003 6 · 0⤊ 1⤋
being married, the house wouldn't be in just her name, it would be in both their names so the forecloser would be on both there records. so they can forget about buying a new home
2007-11-29 13:42:36 · answer #8 · answered by sarahgarlough 2 · 2⤊ 0⤋