On Title, Not Mortgage - Get a loan? Help (Georgia) (insurance, non-recourse)

[sweetmisery]

Hi there. My family is relocating for my husbands job. We cannot sell our current home, but are working on doing a short sale. My husband bought this property before we were married. While I am on the title, I am not on the actual loan itself.

My question is we found a lovely foreclosure where we are moving, at a great price. Would I be able to qualify for a loan? Does being on the title of our short sale property affect me negatively? Could they come after me if I proceed with this new home even if my husbands name is not on it? What if he were a cosigner?

Any help would be great. I've contacted 3 separate lawyers and every single one of them told us to buy a new home and just foreclose. I am not comfortable in doing this at all. We tried to sell our home for 2 years, we tried to rent our home, we have no choice but to move, but renting is more expensive than just buying another home.

We are in Georgia if that matters as far as laws.

Thanks.

[ShanetheMortgageMan]

If you are on title of the home then it's taxes & insurance will be calculated into your debt ratio even if you aren't on the mortgage. Some lenders will try to hit you with the mortgage payment as well but a majority of them will not since you are not on it. You can quit claim off title and then the home is no longer legally yours so the taxes & insurance won't be included and no way would the mortgage payment either.

Buying the new home as a primary residence may or may not be possible, it depends on where you are buying, where your employment is, income, the monthly debt payments you have, the sales price of the new home, how much down payment you have...

[sweetmisery]

Thanks for the reply. We are buying in SE Georgia. I have no monthly debt. The new home is $25k and I have 20% down. My concern is them coming after me in the new house if we short sale the other house. Frustrating situation...we owe $100k on the current house, but it's value is now $27k!!

[ShanetheMortgageMan]

You'd need to discuss with an attorney what potential issues there could be with the short sale and how it could affect your personal finances. Mortgage loans are non-recourse, meaning they can't go after your other assets (like a new home you purchased) in order to repay them the losses they suffered on a short sale. They may be able to file a deficiency judgment against you, not sure, which is why I recommend you contact an attorney. You should only accept the legal advice from someone who knows the law.

This thread may help you http://www.loansafe.org/forum/deed-l...udgements.html