Foreclosure after bankrtupcy AND a quit-claim

[Sweetpea3829]

Hi everyone...most of you are familiar with our situation but for those that may not be...

Chapter 7 discharged in 2007, mortgage IIB.

Mortgage default in August of 2010.

In January of 2011, we used a quit-claim to remove my husband's name from the title of the property in order to clear his name of the property so that we could purchase a home under his name only through USDA. (For more on this, I've posted a thread under the Mortgage after Bankruptcy forum which explains our situation in full detail).

Our first property is still in default and we are currently working on a modification with the servicer.

My question is this...if the first property forecloses, will my husband see any affect to his credit? Because the loan is IIB, it shouldn't affect his credit per se, but we all know that a foreclosure shows up as a public record and most persons with a foreclosure cannot get a mortgage for at least 3 years after the foreclosure sale date. Would this apply to my husband, as his name is not actually on the title to the property any longer?

Or is he free and clear of the property regardless of what happens to it?

[debee]

The foreclosure would still apply to him IF his name is on the mortgage/deed of trust.

[Sweetpea3829]

So even though the mortgage is IIB and his name is no longer on the deed of the property recorded with the town, his name being on the mortgage itself would result in his name reflecting in a public record search for a foreclosure?

[debee]

Yes. When they foreclose they will name the borrowers and that is what constitutes the public record.