Guys,
Please explain me, if wife and husband both on the DEED, but the Loan is on only one person’s name, does the other person would still be responsible for the deficiency?
Please help
Try to only ask a question one time. See your other post for your answer.
I would guess that only the person resposible for the mortgage will be responsible for the deficiency judgement. Let me know if this is right.
Only the one who signed for the mortgage is responsible for the mortgage, so they can not come after you.
If both names are on the property the banks attorneys will put both names on the foreclosure proceedings. They do this in an attempt to nail down the actual person who’s name is on the mortgage. It’s a scare tactic.
Legally, the bank can take no action against the anyone who did not sign paperwork with them, or who they bought the note from if applicable.
If the property is in default it wouldn’t be a bad idea to have whoevers name is NOT on the mortgage note to remove their name from the deed. This way only one signature will be needed when the property title transfers.
How to take out the names from the title? Just going through the title company? If so, do I need to inform the Lender about that?
The easy answer is Quit Claim Deed. The right answer is get an attorney.
BTW, notifying other interested parties as to a FC proceeding is not a scare tactic to “nail down” who is on the mortgage. They know exactly who is on the mortgage.
It is a legal requirement to notify all who may reasonably have a claim to the property or be tied to the property in some way. For example, when I was president of a condo association I would be served with FC papers if a unit was entering foreclosure because the Assn may have a claim against the unit also. Tenants will often receive notice of a FC proceeding against their landlord, etc.
It is not a scare tactic it is informing people who might be affected of the proceedings. It is the same reason they are required to publish the filings in the newspaper for x number of weeks. So that others who may have a claim can know what is happening.
Just because you get served with papers and your name is in the documents doesn’t mean they are coming after you for the money.
BTW, notifying other interested parties as to a FC proceeding is not a scare tactic to "nail down" who is on the mortgage. They know exactly who is on the mortgage.
I’m referring to the situation of one spouse owning the property prior to the marriage. After the marriage the property goes into FC, there is no legal claim against the new spouse, however they will still be named in the FC. This is generally done when they person in FC ignores / avoids the problem. This may not be the same in every state, but this is one of the ways they attempt to get in touch with the person in FC. They try to get to them by scaring the new spouse into making contact. I would say that could be classified as a “scare tactic”.
Regardless, I agree. A quick claim deed is the quickest and easiest way to remove the name. It can be a simple one page form that gets filed at the court house.