Name on Deed but not mortgage.

[spooky99]

What is the name of your state? New York.

I just received a foreclosure notice that I am a co-defendant in the foreclosure proceedings. The mortgage is not in my name and I didn't co-sign for the loan. However, my name is on the deed along with the person who name is on the loan. The foreclosure notice names me and the original mortgagor as "recorded owner"

My question is;

If the house is foreclosed, will that affect my credit even though I am not on the loan?

Any advice would be great.

Thanks in advance.

 

[LindaP777]

Can you give us more details? WHO is on the loan? How did they get a loan on a house that was in your name? Who is the mortgage with?
Banks typically will not finance a property w/o the "owners" on the loan for just this reason. They can not foreclose on a property that is owned by someone else. (Like if my neighbor defaults on his loan, the bank can not come after my property!)

 

[moburkes]

No, it will not affect your credit.

 

[nextwife]

Can you give us more details? WHO is on the loan? How did they get a loan on a house that was in your name? Who is the mortgage with?
Banks typically will not finance a property w/o the "owners" on the loan for just this reason. They can not foreclose on a property that is owned by someone else. (Like if my neighbor defaults on his loan, the bank can not come after my property!)

Any interest conveyed after the mortgage is done will not affect their ability to foreclose. They indeed CAN foreclose on a property that the borrower no longer owns, or no longer fully owns.

 

[LindaP777]

Any interest conveyed after the mortgage is done will not affect their ability to foreclose. They indeed CAN foreclose on a property that the borrower no longer owns, or no longer fully owns.

OK, a little slower for me . . . (need more coffee) . . .
Let's say I get a loan (my house, mortgage and deed solely in my name). Then I convey all interest in the property to my son (but leave the mortgage in place). Now, we know the bank can call the loan, using the "due on sales" clause in the mortgage, but let's say they don't notice. And no one makes a payment. Eventually, the bank forecloses on the property. So far, so good? So whose credit is ruined? Mine, right? And my son would be out a house? (That's why you always get a title search when buying a property.)

BUT, in the case of the OP - he will lose the house, but not ruin his credit. I think I've got it. (I didn't understand his predicament or his question. It appears that his name was put on the title after the mortgage.)

 

[moburkes]

Or, he's simply a spouse who was not required to be on the mortgage.

 

[LindaP777]

HELLO??? When is my coffee going to kick in???

 

[moburkes]

HELLO??? When is my coffee going to kick in???

I don't know how all that works. I don't drink it!

 

[spooky99]

Thank you everyone for the prompt responses.

Originally when the mortgage was done I was not on the deed of the house. Later, when I was helping and eventually paying the mortgage myself, I was added onto the deed (because I was living and managing the property). Everything was working out fine (for 5 yrs) until financially I could support the property no longer. I recommend selling the property but some “other” family members intervened and we had a falling out. I let them handle the property and about 8 months later, I received the foreclosure notice.

Personally, I forgot that my name was even on the deed with all the commotion that was going on at the time.

Would my name being on the deed impact me in anyway? ex. property taxes etc.

Thank you again.

 

[Ozark_Sophist]

I guess you could quitclaim your interest. Your name on the deed does put you on the hook for property tax, liability if someone should get hurt on the property, etc.