Posted by cawest/PA on 8/5/12 8:54am
Msg #429396

Does anyone know the answer to this:

Did a closing yesterday evening, very lovely people. The lady explained to me that they had had such a hard time getting this loan because of the fact that she had a foreclosure on her credit report from her previous marriage. That is where my question is : She explained that on the foreclosed property she was not on the mortgage but on the deed only as her previous husband had added her name to the Deed after they got married and refinanced at a lower rate. I asked her if she had signed anything and she said NO.
Is this normal that she has this foreclosure on her credit report if she was not on the note?

Reply by F2F/FL on 8/5/12 9:49am
Msg #429400

Correct me if I'm wrong but it sounds like she had to of signed something. I went back and read your questions and even if her x put her on the deed after marriage, he then refinanced at a lower rate, and if she was on the deed then she had to have signed the doc's at some time, which eventually would go on her credit report as well, at the time of the forclosure, even if he is now an x. IMO.
It sounds like she needs to do some homework into her past credit history and make some phone calls, check the bank that the refinance was done with, they should have paperwork signed by them, get copies, and then supply any proof she can get in writing, and send copies to the 3 Credit Companies, this will be the only way she can get this kind of problem cleared up. Again this is just my honest opinion, and I am not an attorney.

Reply by cawest/PA on 8/5/12 10:07am
Msg #429401

Thanks for your reply! Based on what I read she has nothing in her favor to see that removed from her CR. I just find it interesting how you learn everyday!

Reply by F2F/FL on 8/5/12 10:24am
Msg #429403

I responded because my husband and I just had to do some research ourselves because we did a Short Sale of our home and it showed up on his cr as a forclosure, which legally it was not, so we are in the process of getting it cleared up on his cr. But we had to do all the leg work ourselves first. There is a difference between a Short Sale of a home and a forclosure just in case anyone is wondering, so we say check your personal cr often, because it makes a difference in your Credit Score also. Thanks for listening.

Reply by HisHughness on 8/5/12 12:28pm
Msg #429411

I understand that other posters see this differently

However, if it were me, I would be raising unshirted hell about a foreclosed debt that was not mine being included in my credit report.

She had no responsibility for that debt at any level. When the note was called, it was not called against her. The situation is identifcal to a parent giving a child title to a car, but retaining all the responsibility for the debt. If the note is called, the child has no responsibility.

Reply by cawest/PA on 8/5/12 3:08pm
Msg #429421

Re: I understand that other posters see this differently

I do believe she was clled on it because her name was on the Deed. Not sure, did not ask but that is what I am assuming.

Reply by HisHughness on 8/5/12 5:18pm
Msg #429425

Re: I understand that other posters see this differently

Being on the deed in no way obligates you one the note, and it is only when you default on an obligation to pay a debt that your credit rating should be impacted. That the property was foreclosed is not a reflection on her willingness to meet an obligation, her ability to an obligation, nor her character.

Reply by cawest/PA on 8/6/12 6:55am
Msg #429466

Re: I understand that other posters see this differently

Thanks for the reply Hugh ... I was thinking along the same line. I understand that States have different Laws (like in TX you cannot get divorced if you are pregnant while in PA you can) but this one seems to be like a very simple rule as it relates to a debt. My only conclusion is that she did not show up in Court to notify the Judge that she was not on the note but only on the Deed.

Reply by JanetK_CA on 8/5/12 6:47pm
Msg #429432

Re: I understand that other posters see this differently

I have no idea about obligations (although, as an attorney, I believe Hugh knows what he's talking about here), but I also question how the ex-husband could have refinanced the loan without the wife signing anything. Of course, property laws vary greatly from state to state, and I have no idea how those work in your state. But in my state, at least, anyone on title of a property has to at least sign the TIL, RTC (if applicable) and the DOT/Mortgage, of course. Maybe her memory is a little foggy?

Reply by MW/VA on 8/6/12 7:18am
Msg #429469

I agree with Hugh on this one. She didn't sign any

obligation for that loan. IMO she needs to contact the lender to get it corrected on her credit report.