Foreclosure in 90017>Question Details

Sue Wylie, Real Estate Pro in Los Angeles County, CA

Re: Foreclosure, would it help to transfer title on the home to a family member?

Asked by Sue Wylie, Los Angeles County, CA Sat Sep 4, 2010

Equity in property but 3 months behind in payments. no money to bring current. What do you suggest?
Family needs to keep home if at all possible. Any way to get the equity out without selling? It's about $90,000

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Transferring title to property will not help. You need to consider all other options, sale, refinance with the help of a cosignor, or if you have regular income and you can make regular payment but cann't catch with entire defaulted amount, speak to an attorney, chapter 13 could be a good option for you. You can make payments with the help of your family members.

Transfer of the title to the property, will not stop the foreclosure, if you are trying to achieve that.

Lender has a security with respect to the payments. Best solution is to look for ways to catch up or resale to pay off the balance and save equity in the home or come up with a payment workout plan with lender.
Good luck.
0 votes Thank Flag Link Tue Oct 12, 2010
I highly recommend just selling the home to a family member just like in the previous post. It maybe be the best thing for you right now since there is equity. Interest rates are incredibly low at well below 5%.
0 votes Thank Flag Link Mon Oct 11, 2010
Hello Sue,

I don't think you can transfer title to a family member when you have a mortgage on it. If you are currently behind getting any equity out is going to be more of a challenge. Yes, foreclosure proceedings have been halted with some banks in some areas, but the truth is NONE of us know what is going to come of it, so don't count on it being a "benefit" for you timewise. Being proactive in getting your situation figured out is going to be the best move for you.

If you do have equity, why not try selling it for a lower price to a family member? There is no law against that. The mortgage is paid off, the house is still in the family, and hopefully there is a lower payment.
0 votes Thank Flag Link Sat Oct 9, 2010
Hi Sue,

Very sorry to hear about your situation, but fortunately timing is on your side. Like one of my colleagues below has pointed out, many banks are halting foreclosures to address technical issues surrounding the transfer of loans to other investors during the time they service your loan. One bank in particular, Bank of America has decided to halt foreclosures nationwide while they sort this all out. It is very likely this will be sorted out and that banks again will proceed foreclosing on owners who can't make payments, but for the time being you have a reprieve and can

I notice you are in Los Angeles, so I'll assume your home is also in California. To date, Bank America is the only bank who has halted foreclosures in our state, more may follow.

If you haven't already you should contact your bank to see if you qualify for a HAMP modification, you may also check yourself by doing the calculations (try searching google for "understanding HAMP waterfall"). This is the best way to begin.

To answer your question more directly, transferring title on your property to a family member is a stall tactic which will accomplish just that, stalling the sale of your home. If you are facing an imminent sale date that does not give you the time to begin the modification process, this could buy you time. However, a better directed effort would be to research how to qualify for a modification and call your lender immediately.

Note you will not get a modification if your family does not earn the income necessary to support a modified loan, but there are better options than foreclosure, particularly if you have equity in your home.

Best of luck, we are here to help.

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Allan S. Glass
President
ASG Real Estate Inc. ®
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0 votes Thank Flag Link Sat Oct 9, 2010
The foreclosure landscape, as described below, is about to radically change.

Bank of America yesterday halted foreclosure sales in all 50 states as part of a widening investigation into flaws in the process. The other major lenders are likely to follow suit.

On Sept. 17, GMAC Mortgage temporarily halted foreclosure proceedings on homeowners in 23 states including Florida, New York, Illinois and Ohio. The company has said employees preparing foreclosure filings submitted signed court affidavits that contained information they had not personally verified.

In what’s been dubbed the “robo-signing” scandal, JP Morgan Chase and Co. has joined GMAC Mortgage in temporarily halting foreclosure proceedings in judicial foreclosure states, following allegations that workers the companies employed failed to follow the proper legal procedures in filing paperwork demonstrating that the lenders had the right to foreclose.

The BofA announcement came a week after saying it was freezing home foreclosures in 23 states where foreclosures must be approved by the courts. The latest move by Bank of America extends a review of foreclosure documents to all states, regardless of the required legal processes.

The bank said the foreclosure process on delinquent borrowers will continue, but it will not proceed to judgment or a foreclosure sale.

So for you, this is the PERFECT time to renegotiate with your lender.

Hope this helps; I'm always available for followup questions.

Deborah Bremner
The Bremner Group at Coldwell Banker
REALTOR, 00588885, ABR, CDPE, eAgent, CSP, SFR, HRC, CRE
(O) 310-571-1364 DIRECT
(D) 818.564.6591
http://www.thebremnergroup.com/news/
0 votes Thank Flag Link Sat Oct 9, 2010
Hello Sue,
Not many people with equity out there who are behind on payments but i am seething this trend increase due to hardships. Its sad. Having said that How about just refinancing to not only get a lower rate(historic low rates today) but if they need that equity that bad they can cash 80% of the LTV out with a HELOC that can be paid back. I have had people tell me that they have been able to get it done.
Well there are other implications involved with Refinancing the property, as you loose protection of non deficiency once you modify your original loan.
Also remember in a Loan Mod or Forebearence you actually will end up having a higher principal than what you have today. Modifications might just help you today to lower yourpayments ect while your balance will keep increasing unless the bank specifically tells you that they will not add it to the back of the loan. I am yet to see one that will give you that in writing. The difference is usually added to the back of the principal balance which keeps increasing. Many people don't know this.
i wonder if there is someone out there with a ace uptheir sleeve on this issue.
Good Luck.
Pebble Singha
Certified Distressed Property Expert
http://www.PebbleSingha.com
Web Reference: http://www.pebblesingha.com
0 votes Thank Flag Link Sat Sep 4, 2010
No, the banks mortgage proceeds any filing you do now.
Is that equity based on today's market values? There may be other solutions if you have equity.

Bob Patrick
Buy A home after foreclosure expert
0 votes Thank Flag Link Sat Sep 4, 2010
transferring the property will not help unless the mortgage is paid off by the new buyer obtaining a new mortgage. If you have a source of income, your best bet is to call your bank, ask for teh home retention department, let them know your problem and that you want to keep your house. Ask about a forebearance or loan modificatio which can bring you current and allow you to make payments once again. if you have no income, it is unlikely to be able to keep a home if you can not pay for it.

Good luck with working things out
0 votes Thank Flag Link Sat Sep 4, 2010
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