Yes, they can foreclose. At the time of the refinance you were not married, it was not your homestead property, and your name was not on the deed. Yes, your interest in the property has existed since before the refinance, but you cannot claim that your interest is now superior to the mortgage because you never recorded the title to let them know you had an interest. If you recorded the deed timely, you would have either had to sign the mortgage too or they never would have given the mortgage. The law protects the bank in this situation because of your failure to notify them of your interest (by recording the deed).
Answered on Jul 11th, 2014 at 3:08 AM