Interest rates have not changed much in the past 100 days, in fact they went down on this past Friday. What is the problem that can't be resolved? A collection? or is it lower FICO?
You are completely removed from ownership yes, you can be added back on but read the documents carefully, the lender may have a clause that disallows this action...
You won't sign the promissory note or be responsible for the loan, and it won't show on your credit, but some lenders will require you to sign an aknowledgement that you are taking this risk.
Some of the risks are: 1. if a divorce is pending you won't own the house 2. you file it incorrectly without title insurance 3. lender might call the note (maybe maybe) 4. the good credit rating going forward won't help your FICO score improve.
If it is a judgement they can lien the house, if it is a large collection they might go get a court judgment, and request that the court issue an Abstract of Judgment. The company must then file its Abstract of Judgment with the recorder office in the county in which your property is located to create a lien.