QUESTION
How will the mortgage affect the credit score?
Asked on Jul 23rd, 2012 on Bankruptcy - New Jersey
More details to this question:
We have a land title under my name and my spouses.And I am the only one paying the mortgage,Mortgage is under my name.She want to separate and she don't have money to pay and there is no equity on the house.If I file bankruptcy is she responsible for the mortgage?and how that it will effect her credit score?please advise
13 ANSWERS
Bankruptcy Law Attorney serving Huntington Woods, MI
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Austin Hirschhorn, P.C.
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If your wife has not signed the mortgage or promissory note for the mortgage she is not responsible for payment. However, since the mortgage is on the real estate of which she is a co-owner with you the fact that there is a mortgage on the property might be picked up and reported by a credit reporting agency. If you file for bankruptcy, since she is not a signer on the note or mortgage, she would have no obligation to pay the mortgage and since the debt was never hers it should not affect her credit in any way.
Answered on Jul 30th, 2012 at 3:28 PM
Burton J. Green
If your wife did not sign the mortgage promissory note, she does not owe that money and payment of the note debt should not be reflected in her credit scores.
Answered on Jul 27th, 2012 at 5:23 PM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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She will be responsible if she signed the promissory note for the mortgage otherwise she is not. She is not responsible simply because she is or was your wife. It ought not to affect her credit.
Answered on Jul 27th, 2012 at 5:21 PM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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Bankruptcy is a very complicated process. It is wise to talk to an experienced bankruptcy attorney before deciding to take this important step. Most Arizona bankruptcy attorneys offer a free consultation about the basics of bankruptcy.
Answered on Jul 27th, 2012 at 5:18 PM
There are three relevant documents in a real estate mortgage loan: A promissory note, a mortgage and a deed. If your spouse signed the note, she is obligated to pay it If she fails to pay, then her credit would likely suffer. If she did not sign the note, but did sign the mortgage (which would be the case if she was an owner of the property as listed on the deed), then she is not personally responsible to pay the note and her credit would not suffer for your failure to pay. If her credit did suffer for your failure to pay, then she could sue for defamed credit.
Answered on Jul 27th, 2012 at 4:36 PM
Bankruptcy Attorney serving Atlanta, GA
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Saedi Law Group, LLC
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If she is not on the mortgage loan then if the home forecloses they can only come after you. However if you have an HOA then she will be responsible for that debt.
Answered on Jul 27th, 2012 at 4:14 PM
The mortgage is attached to the land. So, filing bankruptcy does not affect the mortgage. If the mortgage payments are not made, the lender will likely foreclose. However, none of that will affect her credit score. If she is not on the mortgage, she never promised to pay.
Answered on Jul 27th, 2012 at 3:56 PM
Criminal Defense Attorney serving Calabasas, CA
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Law Office of Bernal P. Ojeda
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It will not affect her at all. She is not obligated on the mortgage since its in your name. When you file it's under your social security number so her credit remains untouched.
Answered on Jul 27th, 2012 at 3:54 PM
Immigration Attorney serving Arlington, TX
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Law Office of Pho Ethan Tran, PLLC
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If her name is not on the loan, she is not responsible for paying the mortgage unless the court assigns some of the debt to her in a divorce proceeding.
Answered on Jul 27th, 2012 at 3:54 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Your question is not totally clear. If there is real property titled to you ONLY, and you are the only signatory on the mortgage note most probably there would be little or no effect on her credit score. If the above is true, she would not be liable for the mortgage and your bankruptcy would be independent of her.
Answered on Jul 27th, 2012 at 3:52 PM
Criminal Defense Attorney serving Deltona, FL
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R. Jason de Groot, P.A.
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If the mortgage is in your name only, it should not have an affect on her credit. Filing bankruptcy has new regulations and I think you must report her income in the schedules, even if she is not filing. It may be best to get a divorce first and keep up the mortgage payments in the meantime. It might be best for both of you to file for bankruptcy protection.
Answered on Jul 27th, 2012 at 3:50 PM
Your bankruptcy will not impact her credit score. She is not liable for the house payment regardless of what you do. However, she cannot have her cake and eat it, too. She cannot both live in the house and not pay for it. If you have only one mortgage, there is no need for you to file bankruptcy to avoid liability for the mortgage. In California, a home lender has no right to do anything except take back the house. A foreclosure will adversely impact your credit score, of course, but you already knew that.
Answered on Jul 27th, 2012 at 3:46 PM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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If she did not sign the mortgage, then she can not be held on it. As for the credit score, it will come up if and when there is a foreclosure on the property on which she is a titled owner. It would be negative to say the least.
Answered on Jul 27th, 2012 at 3:08 PM