Will foreclosure on my home affect my soon to be wifes credit? .?


Question:
Her name is not on the loan but we do have a small loan together for the wedding. We both have good jobs and a good credit score but I fear with my 3 year ARM about to end we may not be able to make the payment when the intrest rate jumps. Thanks to the Michigan economy i am up-side-down with my loan and can NOT refiance. Any sugestions?

Answer:
No, not if she isn't on the loan.

I work for one of the largest mortgage banks in the country. You and millions of others are facing foreclosure in the same situation. I suggest you call the bank and try to convert to a "fixed loan" Call the loan servicing department and tell them the situation. They're heard it a million times (literally) already. If they say no tell them you plan on filing for bankruptcy (they hate this because they can't kick you out of the house for a long time, usually 6 months minimum or longer if court grants automatic stay).

You can also "short sell' you house. Properties are tough to sell in MI right now, lots of fraud recently as well. If they bank will take less than what is owed try calling a realtor to sell the house. Otherwise you'll have to make the payment or walk away.
Do a short sale, you wife is not on the loan documents then she will not be affected.
I assume no payments were made with her name on them not even utilities or home repairs.
Please check with your states consumer affairs departments.
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