(Miryam from Florida) im married my husband has a mtg that behind im only on the deed not on the note. can this ruin my creditm if he get foreclosed? should i take my name off the deed?does the bank report it to the credit beruau or the court? thanks
Dear Miryam:
Foreclosure will certainly affect your husband’s credit since his name is on the mortgage. Having your name on the deed does not however affect your credit either positively or negatively.
A deed is a registration of your ownership of the home with the county of residence. It is not included on your credit report.
What is included on credit reports are loan accounts. Your husband’s mortgage loan almost certainly appears on all 3 credit bureau reports and they will show the late payments and foreclosure.
As long as your name does not appear on the mortgage note, any activity related to the home should have no impact on your credit. This would be true whether you keep your name on the deed or remove it.
Taking your name off of the deed would eliminate any ownership interest that you have in the home. However, you may still have legal claims to the home by virtue of your marriage.
In short, you should see zero credit impact regardless of what happens with the home. From a credit perspective, you will need to make sure to keep all accounts that are in your name as current and in good standing.
From a wealth perspective, you will want to make sure that you and your husband find a positive resolution to your housing situation. I recommend visiting a local housing counselor that can help you determine a course of action. Make sure that the agency is reputable and is a HUD certified housing counseling agency.
Related Links
Visit HUD to search for HUD-approved agencies in your state.
Tags: effects of foreclosure on credit