I'm on the deed, but not the mortgage loan. My husband and I are separated and he is trying to do a short sale. I have filed a quit claim deed. If the home goes into foreclosure, will my credit be affected?
Your credit should not be affected as the bank would not be able to claim that you owe any money. However, you should monitor your credit reports to make sure no inaccurate notations are made to your credit file. If there are any inaccurate notations, there is a process for removal.
If you did not sign or guarantee the promissory note, a money judgment cannot be entered against you. Therefore, being named as a defendant in the foreclosure should not harm your credit. If you are unsure of your rights in the foreclosure, you should consult an experienced foreclosure defense lawyer in your area.
Disclaimer: This answer is provided for informational purposes only, does not constitute legal advice, and does not create an attorney-client relationship. Actual legal advice can only be provided after completing a comprehensive consultation in which all of the relevant facts are discussed and reviewed.
It would be a good idea to have an experienced Florida real estate attorney monitor the foreclosure action on your behalf to make sure the mortgage holder does not seek any remedies against you it is not entitled to.
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If the home goes into foreclosure, you will likely be named as a defendant. What we see most often is that banks, or any lienholder, will name anyone tied to the property in any way as a defendant in the suit to ensure they will get clear title. Because you are on the deed, you have an interest in the property.
If you are sure that you are only on the deed and not the mortgage or note, you likely will not see negative effects on your credit report. However, you may wish to consult a foreclosure attorney to be sure.
If not on the note then your being on the "deed" means that the bank can sue you only for possession of the property, and that should not affect your credit report. Monitor it though, to be sure.
You are entitled to a free credit report annually from each of the big three by going to annualcreditreport.com.
The above is provided for educational purposes only and is not legal advice nor makes you a client of the Mosca Law Firm, PA. Please consult with a lawyer in order to obtain confidential legal advice that is tailored to your specific situation and facts.
Your credit should not be affected if you did not sign the promissory note, even if your house goes into foreclosure. You should consult with a Foreclosure Defense Law Firm to be sure though.
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