Regarding your statement that your wife signed a document that you were the sole owner, there are two ways that I have seen Title Co's remove a spouse from a purchase: Quitclaim and Interspousal Grant Deed. My understanding is that an interspousal transfer grant deed is the "stronger" of the two as a quitclaim can allow future claims against title based on the removed individual's actions after the fact (confirm all legal subject matter with your lawyer). An interspousal transfer grant deed is used to easily transfer real property between spouses so the property is not reassessed for tax purposes, and/or you need to transfer interests in the property, and/or convert â€œcommunity propertyâ€ into separate property (California is a Community Property state).
If you so desire, email me your address and I will pull a title history to see if your wife ever shows up as an owner.
Your credit will go down 80 points after you miss two payments on your mortgage. The third late payment no longer effects the score and the account will be listed on your credit report as 'foreclosure'. Since you are on the loan by yourself then it's your credit score, your credit hit. However, your spouse MIGHT be effected with a lowered credit score only if you have other "credit" together. For example if you have a joint credit card account then your new lowered score by 80 points will drag her score down say 20-25 points. This is a temporary drag on her credit score and she can recover this quickly using a credit score boost technique that I wrote a blog about. However, if you have no 'joint' credit then your foreclosure will not effect her credit score or rating what so ever!
If you would like to speak with me about how to efficiently work to remove the 'foreclosure' off your credit report and begin the repair and rebuild process please call me to discuss, I will be happy to answer any credit repair questions for you.
Good luck to you!
Diane Wheatley, Broker