If my name was on the title (not on mortgage) of a home now going into foreclosure, can I get a mortgage? excellent credit.

Asked by axl3, Seattle, WA Thu Oct 4, 2012

The home is actually close to completing a short sale, it went into pre-foreclosure because it is taking so long. I recently did a quit claim deed. This is a home my husband had before we got married. Will anyone lend to me? I have 30% down and excellent credit.

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5
Kary Krismer, Agent, Renton, WA
Mon Apr 29, 2013
I would tend to rely on what Rhonda says, but what causes me some concern is that you mention giving a quit claim deed to your husband when the property was bought by your husband prior to your marriage. I'm going to presume that at some point he gave a quit claim to you and him to convert the property to community property. Assuming that's correct, hopefully the deed of trust for the loan predated the quit claim deed from your husband, because otherwise you'd almost certainly be on the deed of trust as a grantor.

It might be a good idea to have a loan officer or an attorney review the facts of your situation to make sure they are as you believe.
0 votes
Rhonda Porter, , Seattle, WA
Mon Apr 29, 2013
Since you're not on the debt (mortgage) you should be fine.

If you're looking at buying a home now, your husband will not be able to be on the mortgage with you until enough time passes by after the short sale/pre-foreclosure closes.

However, you should be able to buy, assuming you qualify with with debt to income ratios, on your own.
0 votes
Ray Akers, Agent, Seattle, WA
Fri Oct 5, 2012
Sounds like you dodged a bullet! With good credit, and no responsibility for the loan that is going into foreclosure, you should be fine. I recommend you talk to three lenders before choosing one. Try a portfolio lender like Washington Federal Savings, also a mortgage broker --because they have more options, and investigate mortgages with a credit union.

With 30% down AND good credit, you should be entitled to a loan with great terms. Good luck!
0 votes
Joshua Leret…, Mortgage Broker Or Lender, Lakeland, FL
Fri Oct 5, 2012
Hello axl3,

That is a great question. Although you have no liability on the loan that is going into preforeclosure and you are no longer on title, because WA is a community property state your husbands credit will be pulled to verity debts and place them against you as well for debt to income purposes.

That is where the problem may lie. If this loan is not set up properly, an underwriter may deny the file due to the face that it could look like you are bailing on the other property because of it being upside down to take advantage of a lower purchase price on a better home.

This can be avoided thought. I would love to speak to you further and assist you.

Feel free to contact me.

Joshua Lerette - Sr. Loan Officer
Residential Finance Corp
800.930.7334 ext 1108
Josh.Lerette@myrfc.com
0 votes
Dan Chapman, Mortgage Broker Or Lender, Kirkland, WA
Fri Oct 5, 2012
Yes because you are not on the loan and have no liability to make payments to the lender as You did not borrow money. Now Washington is a community property state so consult a tax pro on the tax ramifications of that but you should be fine based on what I know.
0 votes
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