Foreclosure Where One Name On Mortgage But Two Names On Deed
Hello Everyone,
A question came up which I KNOW this crowd can answer. I would be greatly appreciative of your responses.
What do you think will happen in a foreclosure situation if the foreclosing property is deeded to two names, which are tenants by the entirety (married couple), but the lien in the form of the mortgage/note is only in the name of one of the mortgagors?
Can the bank successfully foreclose on the property? Does the unencumbered name on the deed protect the property from being taken by the Bank, or any Creditor, for that matter?
Thanks,
P.A.
I agree with finniganps - the mortgage debt is attached to the property not the individual. Any additional proceeds would probably be divided between all owners of record.
Jim
Naturally I assumed that the second person was on the title before the loan was made. I would think that it would be easier for the bank to exercise a DOSC than to foreclose if another person was added to the title.
Again, I am just speculating here as I have never dealt with foreclosure, a DOSC being exercised, or any similar situation. Just responding off the top of my head.
Chris
I have heard that in the state of FL, a mortgage must be in the name of both spouses. I do not know what happens if it is only in the name of one spouse.
I have heard about but not participated in a commercial property loan where an individual member borrowed money against his partial ownership. The amount of the loan was limited to a factor of the FMV x his percentage of deeded ownership. Don’t know if this has ever been done on residential.
Jim