My wife is on the deed of her father's house. He is in the beginning stages of foreclosure after some missed payments. She signed on a while ago with the understanding that she would not be financially resposible in any way but so that she would get the home if anything were to happen to him. Now that the foreclosure action has begun she has received legal documents stating she is a party defendant in the foreclosure preceedings.
We are not sure what this means for us. She is not a "co-signer" on the loan and there is no hint of the mortgage on her credit file. Yet, she (and I) am concerned about the potential ramifications to her credit if her father in fact does lose his home to foreclosure. We were recently married, not yet home owners of our own with very good credit as of now and are afraid that this could have a negative impact for us.
What should she do?