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  1. #1
    Join Date
    Apr 2009
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    4

    Default Names on Title Versus Names on Mortgage

    My question involves a foreclosure in the State of: Arizona

    Hello,

    My girlfriend and I own a home that is way underwater in the property value versus the loan value and it may end up in foreclosure.

    My question is this, my name is the only one on the mortgage, but both of our names are on the title to the home. Will a foreclosure still effect her credit as she is not on the note but she is on the title?

    Thanks in advance!

  2. #2
    Join Date
    Jan 2006
    Posts
    38,734

    Default Re: Names on Title Versus Names on Mortgage

    it shouldn;t as she does not owe for the mortgage. Curious how you got her name on the title and not the mortgage though. Most lenders require all title holders to be on the mortgage and vice versa.

  3. #3
    Join Date
    Apr 2009
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    4

    Default Re: Names on Title Versus Names on Mortgage

    I was also thinking that if the mortgage in my name goes into default, but here name is also on the title, (I checked that is how mine is, my name on the mortgage, both of our names on the title)what are the legal ramifications as far as the bank trying to foreclose on a property that only one of the title holders is in default?

    Does the non defaulting party have any recourse?

  4. #4
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    Jan 2006
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    38,734

    Default Re: Names on Title Versus Names on Mortgage

    how is title held and did you add her to the title some time after the original purchase?

  5. #5
    Join Date
    Apr 2008
    Location
    Texas (Dallas area)
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    1,404

    Default Re: Names on Title Versus Names on Mortgage

    If her name was never on the mortgage it will not go onto her credit report.

    Only the actual mortgage signers will have the FICO score hit.

    As far as her name on the deed, that will just be removed in the foreclosure process.

    If the home is on less then 2.5 acres and is a one or two family home there would be NO deficiency judgment in AZ

  6. #6
    Join Date
    Jan 2006
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    38,734

    Default Re: Names on Title Versus Names on Mortgage

    Quote Quoting OhMy
    View Post

    As far as her name on the deed, that will just be removed in the foreclosure process.
    Z
    I disagree with you on this point. If a title is held in common with the co-tenants, the bank cannot foreclose on the share owned by another party. The debtor, in actuality, does not own the entire house.

    that is why how title is held is important and if the gal was added to the title after the mortgage was recorded. Is name added later, the bank can argue fraudulent transfer and seek to have the transfer rescinded.

  7. #7
    Join Date
    Apr 2009
    Posts
    4

    Default Re: Names on Title Versus Names on Mortgage

    Originally it was my name on loan and my name on title, during a refinance her name was added to the title, but I remained the only name on the loan.

  8. #8
    Join Date
    Jan 2006
    Posts
    38,734

    Default Re: Names on Title Versus Names on Mortgage

    so, as long as they were aware of how you were titling, there is no fraud but, did they know? This is a bit unusual.

    I guess since you intend on allowing the foreclosure, anything else is truly irrelevant other than; her credit should not be injured.

  9. #9
    Join Date
    Apr 2009
    Posts
    4

    Default Re: Names on Title Versus Names on Mortgage

    They saw the same paperwork as I did? So I have to assume they were aware of who was on the title.

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