Home | Finances
Article Snippet: Many people are wondering how a foreclosure will effect them when they are on the title of the home, but not the loan. This article should help clear up some of those questions.
Many foreclosure victims find themselves in situations where their name is on the title of a home, but not the note. When these properties go into foreclosure, foreclosure victims in this situation always worry about how the foreclosure will effect their credit. Another fear is that the bank can go after them to repay the loan because their name is on the title. There are also many circumstances where co-signers are not on the title, so they don't think they can be hurt from the foreclosure. In the case of the co-signer, they should be very worried, because they are 100% responsible for repaying the loan. The lender can go after them for a deficiency judgment and the court can possibly require them to pay back the loan. If you are a co-signer, stop reading now and get assistance right now; you need it! Otherwise, keep reading. I've been working with clients facing. In general, the most worried about downside to borrowers in this situation is that they will lose the home and any equity they have in it. In most scenarios, if you never signed an agreement to pay the loan, the lender will not be able to get a judgment or lien against you. They may try to call and threaten you, or send collectors after you, but when all is said and done, you are not liable to repay a loan you never agreed to. However, If you agreed to the original loan agreement (or any agreement later) and then had your name removed, you may still be responsible and the lender could try and collect from you. Also, if the lender paid taxes on your behalf, I would expect them to try and collect them from you, but I doubt a court would give them a lien or judgment. If you have found yourself in this situation and you're worried about the lender coming after you, it's best to speak with a foreclosure negotiator to find out what defenses you may or may not have. In many foreclosure situations, you may be able to save the home, with a repayment plan, or mortgage modification. There are also several legal "loop holes" for people in this situation that can help borrowers stay in the home much longer. Even if your name is not on the loan, make sure to do plenty of research so you know about all your options. If you want to try and save the home, adding your name to the loan may be a possible way to get approved for a mortgage modification. This is when the terms of the loan are changed and the payments can be greatly reduced. The reason adding your name to the loan may help is because your additional income may be enough to make the home affordable. But this is a drastic step to take and could be dangerous if the loan modification is not 100% approved and affordable. Make sure that you always speak with a professional before making this decision.
Article Source: http://www.techcentralpublishing.com
About The Author:
Nick writes articles giving foreclosure help and news to homeonwers who are at risk of losing their homes. His sites examine various solutions to saving a home, including extensive sections on how to qualify for a loan modification that will not almost certainly default. Visit his site now to learn more about how foreclosure works and how a mortgage modification will help you: http://www.foreclosurefish.com/
Please Rate this Article
5 out of 5 4 out of 5 3 out of 5 2 out of 5 1 out of 5
Source: http://www.techcentralpublishing.com
