If my name is not on the mortgage but is on deed and the house goesinto foreclosure, what is my financial obligation and will my credit be impacted?
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If my name is not on the mortgage but is on deed and the house goesinto foreclosure, what is my financial obligation and will my credit be impacted?
We are going through divorce, and he is not making his share of his payment (we split the payment even the loan is only under his name). If the house goes for foreclosure, will I be liable for the debt and will my credit history be impacted?
Asked on January 23, 2012 under Real Estate Law, Texas
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
If you are not on the loan with respect to the home that you are writing about, but on title and the home is lost in foreclosure, you will have no legal obligation in the event there is a deficiency action if the home is sold for less that what is owed on the loan.
If the loan is the original loan on the property (used to buy it) then there is a good chance that even if there is a deficiency on the foreclosure, under your state's anti-deficiency statutes the lender will be precluded from bring a lawsuit for any deficiency judgment.
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