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Transferring Property To Another Person

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Transferring Property To Another Person – Is it Possible?

Transferring property to another personQuestion:  We are considering using a holding group and transferring our property to another person to avoid having to hassle with a short sale ourselves; in California, can my lender come after me for transferring property without their prior authorization? This holding group says they take care of everything including the lender.

Answer:  – Transferring property to another person using a quit claim deed or warranty deed is not illegal, however just because a different name shows up on title and a new owner is recorded on the county records, you are still liable for paying off the loan(s)! [Read more…] about Transferring Property To Another Person

Short Sale? Can we Settle instead of payment plan?

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Question:  We are in the process of doing a short sale to sell our condo in Illinois. We have a mortgage and a line of credit through Wells Fargo. The mortgage is approved for short sale, asking us to bring $20k to closing. The line of credit is almost approved but they are saying that we will have to settle that loan AFTER we close by setting up a payment plan. We cannot afford to pay on this line of credit and we are now considering foreclosure. If we foreclose, can the bank come after our assets? Can the bank come after us for the line of credit? We are moving out of state. Will we have to go to court? Will foreclosure permanently be on our record, or just for 7 years? Will we be able to get loans in the future? Thank you for your help!

Answer:

These are great questions. You have about 3 or 4 questions here so I will try to answer them accordingly. First, the bank can’t come after your assets directly but they “could” file a judgment against you where you will have to pay them the amount that was deficient. The line of credit is what gets most people into trouble. They are the ones who take the biggest losses. So they are the ones that usually come after you. You can actually settle the 2nd mortgage completely for approx. 10% to 15% of the original note if you know what you are doing. That way there is no repayment plan. It’s basically wiped out for good. See most banks are worried that you will file bankruptcy, so they are willing to work with you if you provide them a quick settlement upfront. Third, you shouldn’t have to go to court, unless you decide to fight the judgment if it even goes that far. Fourth, foreclosure will be on your record for about 7 years. Bankruptcy is about 7-10 years. A short sale is about 2-3. A settlement has NO effect on your credit because it was paid off in full. No matter which route you choose, you will eventually be able to get loans again. It’s just a matter of time.

Can I Short Sale My HELOC?

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Question:  I may need to short sale my home in Washington DC. My second is a line of credit of $80K. Is it possible that that lender approve a short sale, or will they automatically not, just because it is a line of credit and not a regular mortgage loan?

 

Answer:  

Yes, you can “work out” something with your lender. A short sale is usually done when you have a buyer come in and offer the bank less than what that home is worth and then you have to move out. If you want to sell the home, than that would be an option. However, a better alternative might be to Settle Your 2nd Mortgage. This is where you would negotiate a full payoff or settlement of your 2nd mortgage. It’s a lot different from a short sale because you get to stay in your home and it doesn’t affect your credit like a short sale would. Hope this helps.

Can you buy a house and then short sale your upside down house?

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Question:  can you get another loan buy a house and then short sale your upside down house. is it legal?

 

Answer:

This actually happens more often then you would think. Homeowners that are upside down and have negative equity, feel it would be better to just let their home go. Most refer to it as strategic defaulting. There have been ideas floating around to try and combat this action because it happens quite often. But before their credit is bad, they go find another home, sometimes smaller, more affordable, usually at or under market value and lock in the rates, then default on the other property. Their credit goes bad and in some cases may have to file bankruptcy, but it’s like they are starting fresh again and they still own a home that won’t take decades before they have equity again.

In Florida. Purchased another home. Foreclosing on 1st home.

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Question:  In Florida. Lots of stuff going on and now the MI says today they need a take it or leave it answer with no negotiation by close of business Friday. Son no longer lives in house that has mortgage insurance on it that the lender has accepted a short sale contract on and forwarded to the MI. He has purchased another house and just stopped making payments on the other in September. The MI says that they want 42000 over ten years 0% interest starting 2/12 or they will foreclose. (Doesn’t the lender do that?) He has some cash but has a baby due at Christmas that requires 20000 out of pocket at least, assuming no emegencies, because of crappy insurance. He made less this year than last but more last year than in 2009. The short sale contract and the appraisal are 89000 and the mortgage is in the high 150s give or take a few thousand. Not sure what the least expensive thing is to do but 42k is a lot more than he will have in the bank after the baby comes and no one wants to pay an extra $350 a month for 10 years to compensate them for a mutually bad investment. I am thinking ask the lender to do a deed in lieu so there is no deficiency and then file a 982 I think it’s called to get around that. If they don’t take the deed in lieu, then file for bankruptcy to get out of the deficiency but since I have little experience with this I need some advice that may help resolve this better than my solutions.

Answer:  – The least expensive thing to do is file bankruptcy. It will cost him $1500 and he can start over from scratch. A lot of lenders, when you tell them you are going to file, will work with you to find a solution. A better option might be to get an attorney or good real estate agent / short sale negotiator to help you push the short sale through with a full satisfaction meaning they can’t ask for any money to be paid back. The loan would be paid in full. Your son would receive a 1099 which would be negated with form 982 as mentioned. Don’t let the bank push you around… unfortunately they deal with homeowners a lot differently than an attorney or 3rd party negotiator because they automatically assume the homeowner doesn’t know what they are doing.