Foreclosure in 85340>Question Details

Mire338b6kh9, Other/Just Looking in 85340

If you are on the deed to a home but not on the loan can you bring a home out forclosure if the primary borrower is letting the house go into default.

Asked by Mire338b6kh9, 85340 Thu Mar 25, 2010

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Bren Johnson’s answer
If the other borrower is not on title you could go to his or her bank and pay loan in full. But you will need his account number to do so. I have seen it done only once but I would not recommend paying it off if you are not the only one on title.Feel free to call me if you would like


Thank you
Brwyn 480-251-9130
0 votes Thank Flag Link Tue Apr 27, 2010
Well there you have it the answer is yes. BUT if you do, remember you are the co-owner of the property therefore the person that is causing the default has an equal right to 1/2 the property unless you have an agreement that states differently. I would get the defaulting party to sign over their portion of the deed protecting your investment.
0 votes Thank Flag Link Fri Mar 26, 2010
Sure! Anyone can bring the home out of default. However, you won't get the credit, the borrower will.
0 votes Thank Flag Link Thu Mar 25, 2010
The lender if in first lien position doesn't care who is currently on the deed to the home, they just want their money. Most deed of trusts have a due on sale clause that allows the lender the option to call the note due and paid in full if the home transfers ownership, however most lender fail to exercise this option.

The answer to your question is yes, but why would you want to reinstate the defaulting loan if the loan balance is more than the home is worth. Typically most homes going into foreclosure in your area have a higher mortgage balance than their current market value. Additionally, if the loan is in default, then I'm sure the HOA dues (if there is an HOA) is behind, as well as possibly the taxes.

If you wish to and the defaulting borrower will work with you, you can bring the loan current and refinance out to pay off the loan, that is if you have the means to do that.

You should consult with a real estate attorney for your advise on how to best handle this situation.

I wish you the best of luck resolving this.

There are many other options you can pursue if you desire is to stay in the home.
0 votes Thank Flag Link Thu Mar 25, 2010
Yes.

Anyone with the funds can bring home payments current, whether or not they're on the deed. So long as the bank gets the money, that's all that matters.

And if someone's on the deed, there's even more reason (generally) to bring the loan current.

And as Dp2 says, that's a technique that some investors use. (And it generally works out to a win-win-win solution. The investor makes a profit, the homeowner doesn't further injure his/her credit, and the bank gets its money.)

Hope that helps.
0 votes Thank Flag Link Thu Mar 25, 2010
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
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Yes you can, and some investors use exactly this strategy to acquire properties.
0 votes Thank Flag Link Thu Mar 25, 2010
Yes, you should be able to if you can pay money owed or pay or pay off the entire debt--protect yourself and do consult with an attorney first, especially for related paperwok, etc.--most professionals do offer a free consultation.
0 votes Thank Flag Link Thu Mar 25, 2010
You need to consult a professional attorney for this question.
0 votes Thank Flag Link Thu Mar 25, 2010
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