Upcoming Foreclosures

Transfering title and foreclosure?

My husband and I live and own a house in California. We want to foreclose our house but don't want our credits to be ruined. My in-laws offer to take the house then do a foreclosure (they are not worried about their credits being ruined) but how do we do that? Can I just transfer the loan document and the house to their names? Thank you

Public Comments

1. No, you cannot do what you are attempting. You could sell (or quitclaim) the property to the in-laws, but you cannot transfer any mortgage obligations in any fashion. You and your husband will be held financially responsible for the mortgage, regardless of any games you attempt. As well, the house will be foreclosed, regardless of whose name(s) are on the title and deed.
2. No...both of your names are on the loan document (note) and transferring title will not change that. Consider trying to do a short sale.....where the lender allows you to sell the property for less that is owed. Other than that you will have your credit history severely damaged because of any late payments (over 30 days late) and a foreclosure.
3. You cannot do this. You would somehow transfer your loan to them (impossible) and then let them foreclose. Suck it up, you are going down the low, rough road.
4. It depends on what bank. With Bank of America, they have a special number to call. When you call, they take your information, access the loan, if your inlaws are there they can help answer questions that will be asked. Also with Bank of America your in-laws would need to be abel to qualify for the loan. If they are paying on a house, or if they have to much extend credit, the bank may say no. It is a good idea to transfer to some one who wants the property. Foreclosures stay on your record forever. They could still come after you for the money they lost at auction for your house, or could come after your in laws for their house. And they can even garnish your wages. I would recommend you ask a real estate agent in your area if he knows any one looking for your kind of house, who may not beabel to come up with the 10% deposit need for a regular loan. They maybe abel to refinance afterwards to get a better deal. Oh also, your inlaws would have to be willing to bring your loan current. I do not know how far you are behinde. Good luck.