On Title But Not On Mortgage

Can Homeowners Be on Title But Not on Mortgage

Gustan Cho Associates are mortgage brokers licensed in 48 states

The primary emphasis of this blog centers around the waiting period obligations that individuals face after foreclosure, specifically those on title but not on mortgage. We often receive queries from married home buyers grappling with financial challenges, making it difficult for them to maintain their existing homes.
These homeowners often fall behind on their mortgage payments and risk foreclosure.

These homeowners often fall behind on their mortgage payments and risk foreclosure. This article will explore the waiting period requirements applicable to individuals on the title but not on the mortgage following a foreclosure.

Waiting Period Requirements After Foreclosure To Qualify For a Mortgage

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They are currently seeking information regarding potential alternatives to retain their current residence. Homeowners can proactively reach out to their lenders, initiating a discussion to explore various alternatives that could help them avoid a traditional foreclosure.

Lenders often present alternatives such as a mortgage following a deed-in-lieu of foreclosure or even a short sale. These options become particularly relevant when one of the spouses is listed on title but not on mortgage. Homeowners should be aware that being on the title doesn’t necessarily imply being on the mortgage note.

In the unfortunate event that a home is on the verge of foreclosure, there’s a possibility for the spouse not mentioned on the mortgage note to still qualify for a new mortgage loan. This qualification is based on their inclusion on the home title, offering a potential avenue for securing a fresh mortgage and, consequently, preserving their home. Understanding the nuances of the relationship between mortgage and title is crucial in navigating challenging situations.

Is it possible for the title and mortgage to be under different names?

Consider the following situation: Jim and Mary Jones, a married couple, find themselves in a challenging predicament as their current home, valued at $400,000, faces the imminent threat of foreclosure. What adds a unique layer to their circumstance is that, on the one hand, Mary Jones is the sole individual listed on the mortgage loan, while on the other, both Jim and Mary are named on the title.

The genesis of their financial strain stems from Mary Jones experiencing unemployment for an extended period spanning over a year. Despite her commendable efforts in securing a job, the arduous reality remains that she needs to catch up on mortgage payments, rendering their once-cherished home now financially unattainable.

This intricate situation prompts reflection on the interplay between ownership and financial responsibility. While the title reflects shared ownership, the mortgage burden falls solely on Mary’s shoulders. The divergence between title and mortgage details highlights the complexity of their predicament, raising questions about the broader implications and potential resolutions for such cases. Prequalify for a mortgage in just five minutes. 

Can a Spouse Be Listed On Title But Not On Mortgage And Still Qualify For A New Mortgage After Foreclosure?


Five years ago, while acquiring their home, Jim Jones, a full-time student at that time, was not part of the mortgage loan arrangement; only Mary Jones was designated as the borrower. However, Jim’s name was included in the title alongside Mary.

In the present scenario, grappling with the challenges of raising young children and caring for pets, they have concluded that renting an apartment is no longer a suitable option for their family. Interestingly, they have discovered that home rentals tend to incur higher costs compared to the financial commitment associated with a mortgage.

This realization has led them to consider purchasing a $200,000 home seriously. With his fair credit standing and annual income of $40,000, Jim is actively exploring the feasibility of embarking on this new homeownership journey. The idea is a financial consideration and reflects their evolving family needs and aspirations. The collaborative decision-making process involves assessing various factors, including housing options, financial readiness, and the family’s overall well-being.

Waiting Period After Foreclosure For Spouse On Title But Not On Mortgage

On Title But Not On Mortgage

Following a foreclosure, there is a required waiting period for Mary Jones, who is listed on the mortgage but not on title, to become eligible for a new home loan. Jim Jones satisfies the conditions with a minimum credit score of 580, and his income meets the debt-to-income ratio requirements.

While Mary’s income cannot be considered for the loan application, she can still be included on the home title, even though she cannot be part of the loan application. As a result, Jim qualifies for an FHA loan for a new home purchase, whereas Mary’s eligibility is restricted due to the waiting period following foreclosure.

Refinance Mortgage With Only One Spouse on Mortgage

If, during a prior refinancing, one spouse was removed from both the title and the mortgage, thereby retaining only the other spouse on the loan, it’s worth noting that they can still meet the criteria for obtaining a new home mortgage. This eligibility remains applicable even when the property they reside in is undergoing foreclosure. Importantly, this circumstance does not fall under the classification of bail.

To elaborate further, adding a new borrower on title but not on mortgage allows for flexibility in the ownership structure without impacting the mortgage qualification process. It’s a legitimate option for individuals seeking to adjust property ownership without affecting their eligibility for a new mortgage.

However, it is crucial to emphasize that any removal from the mortgage with deceptive intentions or as part of a deliberate plan to foreclose on the home is strictly prohibited. Adherence to ethical practices in such financial transactions is paramount to ensure fair dealings and protect the rights of all parties involved. Therefore, individuals should approach such adjustments with transparency and honesty, adhering to legal and ethical standards in the real estate and mortgage processes.

Click here to get information about refinance mortgage with only one spouse on mortgage.

Can a Spouse Listed on the Title but Not on the Mortgage Qualify for a New Mortgage After Foreclosure?

Suppose your spouse has diligently managed the monthly mortgage payments over an extended period, and unforeseen circumstances result in foreclosure. In that case, you still can qualify for a new home mortgage loan, even if your name is not on the mortgage note. Homeowners can include their spouse on title but not on mortgage.

In the unfortunate event of foreclosure, the spouse mentioned on title but not on mortgage note retains eligibility for securing a new mortgage. This unique arrangement allows for a separation between property ownership and mortgage responsibility, providing a potential avenue for the non-mortgage-holding spouse to explore new homeownership opportunities. It’s an arrangement that underscores the significance of title ownership in such situations, offering a potential financial lifeline for those facing foreclosure challenges.

Gustan Cho Associates has no overlays on government and conventional loans. Besides government and conventional loans, we have a network of 210 wholesale lenders, including investors of non-QM and alternative loan programs. We have a national reputation of being a one-stop lending shop.

Not only does Gustan Cho Associates do residential loans, but we have every commercial and business loan program available in today’s marketplace, including hard money loans, factoring, SBA loans, equipment financing, and bridge loans.

Homebuyers who need to qualify for a mortgage with a lender with no mortgage overlays on government and conventional loans, please get in touch with us at Gustan Cho Associates at 800-900-8569. Text us for a faster response. Or email us at gcho@gustancho.com. The team at Gustan Cho Associates is available seven days a week, on evenings, weekends, and holidays.

FAQ about the Article: Can Homeowners Be on Title but Not on Mortgage

What should homeowners do if they are facing foreclosure due to financial challenges? Homeowners should proactively reach out to their lenders to discuss potential alternatives to traditional foreclosure, such as a deed-in-lieu of foreclosure or a short sale. These options become relevant when one spouse is on the title but not on the mortgage.

Can a spouse listed on the title but not on the mortgage still qualify for a new mortgage after foreclosure? Yes, in some cases, a spouse listed on the title but not on the mortgage may still qualify for a new mortgage loan after foreclosure. This eligibility is based on their inclusion on the home title, allowing them to secure a fresh mortgage and preserve their home potentially.

Is it possible for the title and mortgage to have different names for a property? Yes, it is possible for the title and mortgage to have different names for a property.

What factors affect the waiting period after foreclosure for a spouse on the title but not on the mortgage? Factors such as credit score and income can affect the waiting period for a spouse on the title but not on the mortgage to become eligible for a new home loan.

Can a spouse be added to the title but not the mortgage to adjust property ownership without affecting mortgage eligibility? Yes, adding a new borrower to the title but not on the mortgage can allow for flexibility in property ownership without impacting the mortgage qualification process. However, it should be done transparently and ethically.

Is it allowed to remove a spouse from the mortgage with deceptive intentions or as part of a deliberate plan to foreclose on the home? No, any removal from the mortgage with deceptive intentions or as part of a plan to foreclose on the home is strictly prohibited.

This blog about the waiting period after foreclosure requirements for borrowers on title but not on mortgage was updated on February 2nd, 2024.


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One Comment

  1. Hello, I am about to graduate soon from my Bsn nursing program. I’m looking into buying a house after graduation. And I encountered your article that says it’s possible. I have no work experience. I would like more information about it.

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