Name on Deed but Not Promissory Note Question

[bchandler14]

Hi All- Firs of all, thank you to everyone who constantly contributes to these boards. There is a lot of very useful information here.

My wife and I bought our first house in the beginning of 2007 before the crash. The mortgage company decided to only use her information on the loan, so I wasn't added. We both took income hits and decided to let the bank foreclose on the house. My name was on the deed and I also signed the mortgage but not the promissory note. The foreclosure is not on my CR but it is on my wifes. 

Within the next couple of years we're going to be buying again. I am sure one of the questions on the loan app is going to be "have you ever been foreclosed on". I was part of the lawsuit because my name was on the deed so the technical answer is yes.

Has anyone else faced a similar situation or do you have advice on how to handle it? 

[chasmith]

It may be best to document this as the answer if you have answer the question.  It seems to me that foreclosure is an action to take title (the deed) and the fact you weren't on the note spared you the lates on your CR but there's another system that tracks foreclosures and you don't want to risk being accused of making a fraudulent application to a bank.

Depending on the laws of your state the lender might have had an "interesting" problem in the foreclosure since you are on the deed but not the note.  It sounds like you let the property go through foreclosure so that's not useful now.

[StartingOver10]

Here in our state if the borrower is married than the other spouse has to sign the mortgage, not the note, just the mortgage. They are acknowledging that the spouse is putting a mortgage on the property. By the way, this only applies to primary residences, not investment properties.

So, yes, when the lender forecloses on the mortgage all the parties including spouses, any possible tenants etc are including in the f/c filing.

You would need to disclose this to the lender. It is public record anyway.