Will it affect my wife’s credit or any other way, by not signing the mortgage?

by oliver on September 30, 2010

Question:

Will it affect my wife’s credit or any other way, by not signing the mortgage?

I live in Florida and my primary residence in about to go to foreclosure. My wife is on the Deed, but not on the note. When I took the mortgage, she signed that she allow to take 2nd mortgage on our house, but never signed the mortgage. Will it affect her (credit or any other way)?

Answer:

Since she is not on the promissory note, she is not a part of the mortgage. Therefore, your wife is clear and free from the bank foreclosure. Since she is listed on the mortgage, she is simply giving acknowledgment to the lender as the first holder of the lien that supercedes her own interest in the property.

To avoid being in this situation, make sure to keep your mortgage payments current. If you are already behind one month in your mortgage, try to make ways in order to pay it. If you are already two months behind, think whether or not you can still afford to pay for your mortgage. If you think that you can no longer make your mortgage current, sell the property or look for assistance from the U.S. HUD. You can ask the HUD for refinancing or apply in their loan modification programs. You can talk to a professional housing counselor in order to learn the details of foreclosure prevention.

If youare not qualified in the programs and assistance given by the HUD, you can still use another option. If all else fails, you may file for a bankruptcy in order to stop the creditors and your lender from collecting your debt and eventually, stop foreclosure.

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