[marypotensky]

My husband and I are going thru a divorce and own a home in MI with a third party. However, we are on the title but not the mortgage. I was always told we are not responsible for payment of the loan if it were to go into forclosure. Any comments when be helpful! Thank you

[dori36]

Originally Posted by marypotensky

My husband and I are going thru a divorce and own a home in MI with a third party. However, we are on the title but not the mortgage. I was always told we are not responsible for payment of the loan if it were to go into forclosure. Any comments when be helpful! Thank you

A little more clarification would be helpful: you call it a "title" so does that mean you're talking about a modular or trailer home? Is the other person the one on the mortgage? Are they, also, on the title (or deed)? Obviously 'someone' is responsible for the debt. If they are the only ones who signed the mortgage papers and who appear thereon, I guess they'd be responsible. Take a close look at your contract(s).

[scolls]

If you are on the deed than you would've had to have a sign as a nonobligor. They couldn't secure the house on the loan without everyone on the deed. They cannot go after you for the payments, but they can take the home and sell it to satisfy the debt. This information should be in the closing documents. They shouldn't have been able to remortgage the home without you signing something if you are on the deed.

[dragon_fly_12]

If someone else is on the mortgage that you and husband are paying, and you and husband stop making these payments, they creditor will go after the 3rd party who has the mortgage in their name. If the creditor finds the 3rd party has the means to pay the obligation, then they will persue that avenue - Most likely, they would not go after you and husband as you're just listed as a partial owner. HOWEVER.. if the property taxes are not paid, the local county can hold you and husband responsible for those taxes. Just because you all stop making the payments does not mean the payments "go away" like magic.... I assume the 3rd party loan holder is ok with you guys screwing his/her credit by not paying the mortgage as agreed?