I am an owner of a building, my name is on the deed but not on the mortgage. I have been paying the mortgage for years but can not afford it any longer. If i have to foreclose, will my credit be affected in any way, though my name is only on the deed not on the mortgage??
When a foreclosure is filed, you will be named in the foreclosure, so that your interest in the property is wiped out. The foreclosure may show up on your credit report as a foreclosure filed against you, however there will not be any negative reporting as far as your bill payment ability.
The credit reporting agencies will not share what information goes in to determining credit ratings. So, if the foreclosure shows up on your credit report it might tweak your credit score, but it shouldn't have much of an impact. You can also write a letter to the credit reporting agency clarifying that your interest in the property was being forclosed, but not an obligation for payment.
This answer does not constitute legal advice and does not and is not intended to create an attorney-client relationship. The law may vary depending on the state in which you reside. It is intended only to give some direction in which to seek assistance.
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You do not owe the money to the Lender. Though you owe the building you will be served and noted as a defendant in any coming foreclosure action. An option for you would be a Deed In Lieu of Foreclosure with a stipulation that no negative reporting be made to the credit reporting agencies. Please consult with competent counsel in your area. This answer does not constitute legal advice and does not and is not intended to create an attorney-client relationship. The law may vary depending on the state in which you reside. It is intended only to give some direction in which to seek assistance.
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