My b/f bought house with his sis and her b/f-his name on deed/not mortgage-will his credit be ruined foreclose

Question

My b/f bought house with his sister and her fiance in December 2005. This January 2008 she moved out and we have been paying the mortgage, my b/f the ex-fiance and myself. Now the ex can't pay as of this July's mortgage pmt and we can't afford the amount on our own. We are going to let the house go becasue it is valued at $205k as of July 08 and purchased for $365k in Dec 05 so can't re-fi, no equity, etc. My b/f name is not on the mortgage, only his sister and the ex-fiance are on it, but all three of their names are on the deed. Will the foreclosure affect my b/f's credit the same as his sister's and her b/f when the house forecloses even though he is not on the mortgage? Plz no sarcastic comments - really looking for a helpful answer only!!!

Answer 1

ONLY the names on the mortgage will have their credit affected in a foreclosure.

Best of luck!

Answer 2

I have been agonizing over this exact same question. I have found that the people in here have given SO MANY incorrect answers. Mortgages and foreclosures are VERY complicated, and people think they know, but end up passing on ridiculously incorrect answers.

Besides consulting with about a dozen attorneys, I found this great website where the people actually KNOW what they're talking about. (see source below). If I were you, I would go there if I had any questions related to credit, mortgages, bankruptcy, etc.

Hope this helps.

Answer 3

Are you willing to stay in the home if you can afford payments.. if so email me at [e-mail] with more info..