Re: Does New Owner mean new forclosure process??

Posted by Jim V on February 18, 2006 at 01:01:47:

In Reply to: Does New Owner mean new forclosure process?? posted by Jessica on February 17, 2006 at 12:34:18:

: If you had property in California that went into forclosure on Dec. 15, 2005 and then transfered the grant deed to a new owner on Jan 15, 2006 and the loan was still in your name however the loan is secured by the property not you, will the forclosure appear on your credit or the new owners? and will it affect you in any way or is it now the new owners?

Jessica,
I'll assume you mean a Notice of Default was recorded on Dec. 15, 2005 with that being the beginning of the foreclosure process. The California foreclosure process takes just about 4 months from the recordation of the Notice of Default, so if a transfer of interest in the property happened on Jan 14, 2006, no foreclosure would be recorded yet.

If the grantee(person receiving the property) made up the back payments on the loan, and kept payments current, your credit report would reflect something like 90 days+ past due on the home loan, followed by reinstatement and current payments.

If the grantee did not bring the loan current, and continue to make monthly payments, your credit report would reflect past due home loan payments of 180 days+, followed by a Trustee's Deed(foreclosure). That's pretty much a re-iteration of what NJDave said.

If the grantee has brought the loan current, and can keep it current for at least six months, I wouldn't sweat any potential credit impacts if there is a future default. It would certainly be a "glitch" on your credit report, but as long as you can document you had no interest in the property when the default occurred, you should be able to overcome it.

Did that answer anything, or just raise more questions? :)

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: : If you had property in California that went into forclosure on Dec. 15, 2005 and then transfered the grant deed to a new owner on Jan 15, 2006 and the loan was still in your name however the loan is secured by the property not you, will the forclosure appear on your credit or the new owners? and will it affect you in any way or is it now the new owners? 

: Jessica,
: I'll assume you mean a Notice of Default was recorded on Dec. 15, 2005 with that being the beginning of the foreclosure process.  The California foreclosure process takes just about 4 months from the recordation of the Notice of Default, so if a transfer of interest in the property happened on Jan 14, 2006, no foreclosure would be recorded yet.

: If the grantee(person receiving the property) made up the back payments on the loan, and kept payments current, your credit report would reflect something like 90 days+ past due on the home loan, followed by reinstatement and current payments.

: If the grantee did not bring the loan current, and continue to make monthly payments, your credit report would reflect past due home loan payments of 180 days+, followed by a Trustee's Deed(foreclosure).  That's pretty much a re-iteration of what NJDave said.

: If the grantee has brought the loan current, and can keep it current for at least six months, I wouldn't sweat any potential credit impacts if there is a future default.  It would certainly be a "glitch" on your credit report, but as long as you can document you had no interest in the property when the default occurred, you should be able to overcome it.

: Did that answer anything, or just raise more questions? :)


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