Foreclosure in Los Angeles>Question Details

Vasquez, Home Owner in Los Angeles, CA

I am on title only and my nephew is on title and loan. He has decided to forclose. May I be held responsible for the loan? Will this affect my credit?

Asked by Vasquez, Los Angeles, CA Tue Apr 3, 2012

I'm in california and have joint tenancy with my nephew on a 4-plex. I am on title only and he is on title and loan. He has decided to default on the loan and let it go into forclosure. Since I am not on loan just on title will I be responsible for the loan or will my credit be affected?

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Emily Knell’s answer
That's really stupid to just let it foreclose.

You should seriously having your nephew do a short sale before just letting it go to foreclosure. Letting it go to foreclosure is not the easy way out & it can open your nephew up for future deficiency judgments against him by the bank(s) for the negative balance.

I have a lot of experience closing short sales & have a 100% success rate that I can PROVE, you can click through my profile to see recent answers here on Trulia where I talk about them.

Shoot me an email if you want to talk about this some more.I don't look back on this same Trulia thread for answers posted after mine.
562-430-3053 c
Realtor Since 1996
Main Street Realtors
2 votes Thank Flag Link Tue Apr 3, 2012
Hi Vasquez;
The lender can only hold the party responsible for the loan, responsible. You cannot be forced to pay or make up any deficiency. However, since BOTH of you are on title, BOTH of you must agree to sell, or to sign over a deed in lieu of foreclosure. The decision is only 50% his. I am currently in escrow with a listing with just this scenario: one party on the loan and both on title.
While you cannot be forced to pay a deficiency, HOW this is reported WILL affect all parties.
Avoid the foreclosure, for both of your sakes.
While I know that at times it can seem easier to just walk away, this decision has long term consequences for both of you. Please do consult you attorney or tax advisor, and speak with a realtor who is certified in short sales.
More information is always better. If you need help knowing what to ask, feel free to email me, and I'll send you my list of "Questions to Ask of the Short Sale Agent"
Best of luck,
Deborah Bremner
The Bremner Group at Coldwell Banker
REALTOR, 00588885, ABR, CDPE, eAgent, CSP, SFR, HRC, CRE
(O) 310-571-1364 DIRECT
(D) (310) 800-2954
Accredited Buyer Representative|Certified Distressed Property Expert |Pre-Foreclosure Specialist Certified
I want you to know that I appreciate any referrals from friends and associates who may be in the market to buy or sell real estate. You can count on me giving them the same high-quality service I provide to all of my clients.
1 vote Thank Flag Link Tue Apr 3, 2012
I would definitely contact "Melissa Zavala" , before I'd contact anyone else about a short sale. She is truly the best in the business and she always looks back on the same Trulia thread for answers posted after hers.
0 votes Thank Flag Link Fri Apr 6, 2012
Legal help is always advisable.

You are not responsible for the loan, just your nephew, therefore your credit will not be affected. But, you might be asked for an explanation later on if you decide to buy your own property for title insurance purpose. Your nephew could face liabilities if he lets it go in foreclosure without doing anything. Besides damaging his credit, he could face tax and personal assets consequences.

There are other options, and short sale is one of them. Call me find out your situation.

Thank you,

Douglas Perez
(213) 375-8741
0 votes Thank Flag Link Tue Apr 3, 2012
Vasquez your best answer will be one from a real estate attorney. If you are not on the loan, it is highly likely you will not be responsible for the loan even though both of you need to sell the listing agreement to sell. If you need additional assistance with options to avoid foreclosure, please contact me, there may be other options for you and your nephew.
Web Reference:
0 votes Thank Flag Link Tue Apr 3, 2012
I would strongly recommend that you look for a Real Estate attorney on this case.
0 votes Thank Flag Link Tue Apr 3, 2012
You probably are not liable for the loan. But there are better ways out like others have said a short sale or even a deed in lieu of foreclosure. You really need to have an attorney advise you to be sure of all the ramifications.
0 votes Thank Flag Link Tue Apr 3, 2012
Hi Vasquez,
That's no good idea letting it go to foreclosure. Please email me at if you would like
more info about. I'll be glad to help you out.

Thank you.
Ludy Ivonina
0 votes Thank Flag Link Tue Apr 3, 2012
Are you sure you are joint tenants and not some other form of common ownership? You would have had to do this when you took title and the lienholder wouldn't have allowed a loan with only one of the owners unless they made a mistake. You need an attorney looking at your particular paperwork.
0 votes Thank Flag Link Tue Apr 3, 2012
Hello Vasquez,
Since you are inquiring, you show real concern. As such, you should seriously have your nephew look into a short sale and not a foreclosure. I specialize in short sales.. I successfully close them throughout California and I am located close to you... In addition, depending on the situation, I may be able to get you special lender incentives (money) to cooperate with a short sale as opposed to a foreclosure. You would do yourself a favor to contact me to go over your option. There is no obligation and I am a tremendous resource. Please contact me directly and not on this site. Thank you.
Richard "RJ" Kas (SFR, SRES)
"Representing the finest properties from Los Angeles worldwide"
KAS Properties - Coldwell Banker Previews International - Beverly Hills South
166 N. Canon Dr, Beverly Hills, CA 90210
310.859-5334 office - 310.488.9826 mobile - 310-273-0690 fax ATT: RJ - - DRE: 01352771
Sellers Buyers Investors Leasing Consulting
0 votes Thank Flag Link Tue Apr 3, 2012
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