My father and I purchased a property in 2004 where my father's name is solely on the mortgage loan with B of A, and both our names are on the deed - through a quit claim or right to survivorship. Fast-forward to 2012 and the property is 6 months past due, and bank has referred the property over to foreclosure; and now we have both received a collections noticed from an attorney requesting the entire amount of the principal balance.
So my question is . . . in the event the property goes into foreclosure, can the mortgage company/collection attny hit my credit with this obligation even though my name isn't on the loan? Thanks and any comments would be appreciated!!
A Deed or a quick clamin deed is just a document to indicate who has access to the property. You are not liable for anything since you are not on the note.
However, that does not ensure that the creditor wont attempt collection from another.
If they do report to the CRAs, it will be entered. The CRA does not pre-evaluate the legality of such reporting.
If they do report, I would send them an immediate direct dispute, asserting inaccuracy in their reporting of unobligaged debt to your credit file.
They must then either verify the accuracy of such reporting within 30-ish days, or delete it from your file. The first step towards raising the inappropriateness of their reporting, and getting them on record as having investigated the matter and concluded that such reporting is proper.
I would, particularly in this case, not dispute through a CRA, as you want to ensure that the creditor actually receives all of your supporting documentation.
That wont happen if you dispute the issue through the CRA,