If you're going through a foreclosure, the prospect of losing your home far outweighs the potential impact the foreclosure has on your credit. Even if the mortgage is under your spouse's name alone, the foreclosure process may impact you and your credit in some situations.
Credit Reports
Every consumer has a credit report. These reports exist for individuals, not families or married couples. Many couple share joint loans or mortgages, and such information is listed on each spouse's credit report, but it does not create a joint report. If you and your spouse maintain completely separate finances, your spouse's foreclosure will not be indicated on your credit report.
Foreclosures
A foreclosure is a serious negative mark on your credit report. Companies that use your credit report to determine a credit score will significantly lower your credit score if you've gone through a foreclosure. How much a foreclosure affects your score differs, but the newer the foreclosure is, the more serious effect it has. Also, other creditors may raise interest rates or terms on other loans once they see a foreclosure indicated on your credit report.
Joint Loans
Even if you do not have a joint mortgage with your spouse, you may have other loans or credit accounts that are held jointly. If your spouse goes through a foreclosure, the interest rates on those loans may rise and affect both credit reports. For example, if you and your spouse have a joint credit card and your wife goes through a foreclosure, your credit card company may raise interest rates on the joint card.
Financial Health
If you and your husband are going through a foreclosure, there is a strong chance that you experience difficulty paying other bills. Though the mortgage is in your spouse's name alone, having money unavailable to pay other bills because can directly or indirectly affect your credit report. Though the foreclosure may not get listed on your report, your failure to meet your other obligations will be.
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