My wife is on the deed,not the mortgage, We are being foreclosed on. Can they come after her?
May 29th, 2008 // 7:02 pm @ admin
josh n asked:
We reside in florida and own the home with no equity. The home in NJ has 2 mortgages. one for 412000 and heloc for 75000. I am on the mortgage only. She is on the deed. I am concerned that they can come after my wifes assets. Or do they just remove her interest in the home during the foreclosure process?
We reside in florida and own the home with no equity. The home in NJ has 2 mortgages. one for 412000 and heloc for 75000. I am on the mortgage only. She is on the deed. I am concerned that they can come after my wifes assets. Or do they just remove her interest in the home during the foreclosure process?
Post Footer automatically generated by Add Post Footer Plugin for wordpress.
Category : Foreclosure Questions
MIND THE GAP
2 years ago
Only the person on the mortgage MAY be liable for loss the lender may have.
rusty_266
2 years ago
Your wife’s assets are safe, there’s no question about that. As for removing your wife’s interest in the property, I would suggest that they might have a bit of a problem with that. Obviously it depends on the laws in your area, but they should have had her signature on the mortgage. Without it, they potentially put themselves in a situation that could be a bit of a legal problem.
efflandt
2 years ago
The mortgage lender can foreclose on the property (mortgage lien is senior to her interest). And if there is any deficiency (especially the HELOC) “you” might still owe something depending upon type of loans. Simply transferring property does not get you out of your loan obligations. If the mortgage is unpaid, your wife effectively has no interest in the property (unless you yourself got a fraudulent loan).
Since it is not your primary residence, you may owe federal income tax on any forgiven loan amount. But I doubt if the HELOC would be forgiven if that is not covered by the sale.
Mr Placid
2 years ago
Maybe, maybe not. The answer is not based on whether your wife’s name is on the deed. It is dependent on whether, and to what extent, your state makes one spouse responsible for the other spouse’s debts.