foreclosure, myself and wife on title but not on mortgage?

[arameth]

Hi,

 

My mother purchased some property several years ago. Since we lived in the area but she did not, we were put on the title so we could help keep the land in good shape and had legal authority to do so. There is no dwelling on the property (raw land).

 

She was not able to keep up payments, and has gone into foreclosure.

 

So my wife and I were served papers from the bank, which is a little confusing. So my questions are:

 

1. I think we're listed in the lawsuit because we're listed on the title. Does that sound right?

2. This won't show as a foreclosure on my credit report, correct? I never was on the mortgage and was only on the land title.

 

Anyone else ever go through something like this, where they were on title but not on mortgage? Is there any action I need to take? Says I have 20 days to file a response to the complaint...not sure what I'd do, other than I'm not planning to contest this.

 

Thanks!

[tomforr]

Experts will weigh in but might the Foreclosure show up as a Public Record item?

[namars]

I used to work for a title company.

 

1)The bank has to foreclose against everybody that has an interest in the property that came after their mortgage. This gives them a clear title

to sell it after the foreclosure is complete.

 

2)I would think it may show up as a public record but that's just a guess.

[doodlebugger]

It has been my experience that you should always respond to the complaint, just to ensure that you are not defaulting to their request, and also to ensure that they know where you stand in the situation. If you are fine with them foreclosing, then I would send a response just stating that you have no interest in the property and you are willing to sign over the title rights to them immediately. Every state is different, and I'm not sure if you will get hit with a public record. Personally, if it were me, I would contact the bank and request that they allow us to immediately sign over our rights in exchange for them not reporting anything. I would assume they could drop your names from the lawsuit at that point, and then they wouldn't be required to write? I don't know - not a legal expert, but it would be worth a try. You do not want that on your credit report!

[Capstone Mortgage]

It is true that every state is in fact different in how they handle situations like this one. What state are you in? Generally speaking, they could slap that on you as well since your name is on the title or if anything eventually go after you with a lawsuit. My advice to you though is to call and talk to someone directly dealing with the foreclosure. They can provide the most accurate information to your problem.