If a home goes into foreclosure how will that effect someone who is on the deed but not the loan?
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If a home goes into foreclosure how will that effect someone who is on the deed but not the loan?
I am contemplating walking away from my home and I am the only borrower on the loan. My husband is on the deed. If he were to try to apply for a loan and purchase a home on his own, would this house show up or bring any problems for him down the line?
Asked on March 1, 2012 under Real Estate Law, California
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Potentially the foreclosure of the home that your husband is not on the loan to but on the deed may show up on his credit report as a foreclosed property but I do not think that this is very likely. The reason is that most credit reporting companies show negative credit marks based upon delinquent loans and defaults of a particular person on a loan that he or she obtained. Since your husband is not on the loan you are writing about, his credit most likely will not be impacted by the possible foreclosure of the property you are writing about.
This is not the case with your husband. Obviously your credit will be impaired by the foreclosure if the property that you have a loan on.
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