On title/deed, but not mortgage (foreclosed, sale, settlement, property)

[shenane]

Or start paying on the bills so then the point will be moot. They won't have a reason to come after you.
Look at little ways you might be able to cut back and use that money to make payments.
You might have already done all the cutting back you can do but take a look at your situation.
I know you are a stay at home mom, but could you get a part time job? Make some money from home? Give up eating out? Give up cable TV? Give up any unessessary consumables? i.e. sweets, alcohol, cigerettes, make up, new clothes.
If getting a part time job means too much money towards baby sitting, could the husband take on a second job? Something once a week. Sell any extra furniture you aren't using. Get a really cheap cell phone plan ( I hardly ever use my cell phone and I have a pay as you go plan that costs me less 5 dollars a month). If you have a landline phone, can you get rid of call waiting, call return? If you have DSL or broadband, can you go back to dial up? Or even save money on dial up by using the internet at the library. etc.. etc..

Good luck!

Originally Posted by HappyTexan

Every state has their own rules. Go speak to a real estate attorney about it. Don't rely on forum posters to know your situation and legalities of your state.

[reneerotthoff]

Originally Posted by sweetbeet

oh, And Everyone Here Seems To Be Using The Term "mortgage" To Refer To The Mortgage Loan. There Are Two Documents, A "note" (promise To Pay Back X Amount, On Certain Terms, Such As Monthly Payments With Interest), And A "mortgage", Which Is A Security Interest In Real Property. The Mortgage Says, If I Don't Pay As Required By The Note (or If Whoever Is Supposed To Pay, According To The Note), The Lender Can Take The Property.

It Really Bugs Me When The Term "mortgage" Is Used To Refer To The Underlying Loan Obligation, As Evidenced By The Note. I Know Most People Do This... But Still, It Creates Confusion.

A Person Can Have Title To Real Property (be "on The Deed") Without Being Obliged To Pay The Debt, That Is, Without Being Listed On The Note. But A Lender Should (and Probably Will) Insist That Everyone With An Interest In The Property (i.e., Everyone "on The Deed") Sign The Mortgage - Otherwise, It Is Much More Difficult To Take The Whole Property When The Debt Is Not Paid. They Might Only Be Able To Take The Interest (e.g., A 1/2 Interest) Of The Person Who Signed The Mortgage, Not The Entire Property.

So This Being Said, If My Name Is On The Mortgage And The Deed, But Not On The Note, Is The Person On The Note Still Obligated To Give Me My Share Of The Investment Agreed To By The Contingency Plan We Drew Up (w/out A Notary Unfortunately) At The Time Of Purchase? I'm Just Concerned Since I Know The Note Is Proof Of Pmts Being Made And Even Though My Name Is Not Listed I Have Been Giving My Share Of The Mortgage Pmt On A Monthly Basis.

Thank You.

[DMenscha]

In CA, even if you don't sign the note and show up on the deed of trust, your interest can be taken from you in a foreclosure. Unfortunately I know this from personal experience.

[bentlebee]

Wow it sure sounds like many people like to spend money and never want to pay back...shocking..., but shouldn't it be if you owe you should pay back! How can you sleep well at night.....how scared must these people be to open their mail or answer phone calls.....

[palmcoasting]

Originally Posted by HappyTexan

Every state has their own rules. Go speak to a real estate attorney about it. Don't rely on forum posters to know your situation and legalities of your state.

YAY! Ask an attorney and accountant regarding your situation in your state.
Everyone's situation can be different and I know in each state the rules vary.

[Prinny]

If you are married, you definatelu should be on the deed/title of the home even if you're not the one who took out the mortgage. All of our homes were purchased without my being on the loan and by law in our state I am required to be on the title. I live in a community property state. As far as debts go, I have no idea how that goes but I do know for your protection it is best your name be on the deed/title.

[bunny8160]

I can't answer your question but I can complicate the situation by including the following in the mix (an email discussion I had yesterday with our mortgage company rep). The rep couldn't supply any information one way or the other regarding potential damage to my credit rating (ref removing my name from the mortgage), only that the lender strongly suggests removing my name from the mortgage to get the lower interest rate - - this strikes me as a quick and dirty solution with long term negative implications (for me):

[question posed to mortgage company rep]

I have a question regarding your suggestion that my name be removed from the mortgage in order for us to obtain the lower interest rate. I need to know what the implications of this will be in the long term.

It seems to me that removing me from the mortgage will significantly lower the debt to credit ratio currently used to calculate "my" credit rating and/or my ability to obtain a loan (for a house, car, whatever).

If you're saying there's a problem with my credit history now (my credit rating is 690, while my husband's rating is 745) , is it not safe to assume that removing me from the mortgage simply add to this in the long term???


Even though you say my name will still be on the title, if my name is taken off the mortgage, the $ I now pay toward our mortgage (and will continue to pay, regardless of whether my name is on the mortgage) will be invisible in terms of my over all credit. It's not like the money will be accrued in savings or allocated toward any other asset that I could claim, it will simply be invisible. The house won't be factored into my overall credit score as a debt or credit (in terms of equity), I wouldn't even have a credit history in terms paying rent. Basically, I'll have nothing to show for the money I contribute toward the mortgage on our home every month.

In a nutshell, I would have to ask [you] what is the first question a lender would ask someone who is married, who is listed on the title to a home, but who is not on the mortgage? The question would be "why aren't you on the mortgage?" The answer, (easy to arrive at without my even providing a response) would be to assume that I have bad credit. The implication, whether true or not, would be just that.

[Response from mortgage company]:
"In response to your questions, I called one of our lenders and I reviewed your particular scenario, I wanted to be sure there was no other alternative. FNMA and Freddie Mac make the rules for mortgages guidelines regarding credit risks. Everyone agrees that you are not a credit risk and definitely an asset, but, the guidelines have been ratcheted so tightly unfortunately you are caught in this position. I asked specifically what they would do given your situation, and all said they would go off the loan in order to get the better rate."

[bentlebee]

I had a tenant stating that he was on the deed but not on the mortgage, only his wife so he considers him self not going in foreclosure or better/worse his house will be auctioned off this month....so when they filled out the rent applications he didn't mention it since it the mortgage was in his wifes name...but I always let all adults fill out the application so it should IMO be mentioned on at least one of them and his wife has no work and he is self employed....by the way both have the same last name and are married...so what is the difference

[bunny8160]

If we were to default on the loan payment, I understand that my being on the title makes me liable for payment (and the result would be bad credit as a result of foreclosure), just as it would my husband. However, that is not our situation, we are merely looking to refinance to get a lower interest rate.

The difference is that in attempting to refinance the lender looks at our credit scores as separate entities, even though we are married. When we originally purchased the home (4 years ago) our scores were combined and the lender calculated the mean to arrive at an overall score.

[jctx]

Originally Posted by bunny8160

If we were to default on the loan payment, I understand that my being on the title makes me liable for payment (and the result would be bad credit as a result of foreclosure), just as it would my husband. However, that is not our situation, we are merely looking to refinance to get a lower interest rate.

The difference is that in attempting to refinance the lender looks at our credit scores as separate entities, even though we are married. When we originally purchased the home (4 years ago) our scores were combined and the lender calculated the mean to arrive at an overall score.

I wondered about this. So if you are only on the title (or deed?) you are still responsible for the debt? I didnt know that. Then what is the point of signing on for the mortgage or loan or note payment contract, if they can require you to pay no matter what? I think I'm confused or something