My property has no equity, but is not upside down. If your property has no equity you are upside down. First thing you need to do is find out what your home will appraise for in today's market. Compare that against what you owe on the mortgage. You need to find out if you can refi into a better loan or not.

You need to look more into short sales to see if a short sale will help you accomplish your goals.

I think the way the my question was punctuated gives the wrong impression. I don't want to lose the house--that is why I want to sell it to husband, so we can stay in it.
What are the options to allow us to stay in the house?

Dances
I would suggest that you speak with a REaltor regarding your options. A Realtor with short sale experience could probably help you alot. You need to learn your options and the pros and cons of each.

I would also talk with your CPA. What you probably need to do is a short sale. In a short sale you bring nothing or very little to the table. so the REaltor works for "free". Most lenders will insist that you conduct a short sale with a REaltor.

Have you gone to the HUD website to see if you qualify for a refinance? You might be able to add him if needed to qualify, many times they can reduce the interest rate to as low as 2.5%. If none of this works, then your best option is to short sale. If you short sale, most lenders will not allow you to sell to a relative. If short sale is the best answer I would be able to help you with that or at least consult with you to see what your options might be and the best plan of actions. Give me a call at 909-945-5763

Diana

thanks for all your input everyone. I've been trying to get a loan modification from my lender since last July when I saw they writing on the wall for our business. They were completely unresponsive and I eventually went into default in Jan of this year--I'm still trying to get somewhere with them, calling and writing, but have pretty much lost all hope of getting any assistant from them. My once stellar credit is now a mess--dropped from last year from almost 800 to who knows what now.
My husband is not on the title, as I owned the property before we married and we kept our properties separate. However, if he bought it from me, he'd have to have a pretty hefty down payment considering the current lending situation, right? We don't have thousands of dollars sitting around for a down payment right now.
About the FHA loan, I think I did look into that, but then MI would have to be added to the loan since the equity was under 10% and with the MI, it took the payments back up to about the same as they are now. Come to think of it, that would be added to a loan if my husband bought the property too, I suppose.

Any other input/suggestions? I really appreciate your responses. Geez, can't believe 3 people responded in a matter of hours, when my lender hasn't responded in almost a year! Thanks.

You don't need a realtor but seeking advice may be worth while. An escrow company and title officer should be able to help. You said your husband is not on the mortgage currently but is he on the title already? And just like Diana mentioned your husband has to qualify for a loan to purchase the home...that will at least pay any outstanding liens on the property. Otherwise...try and seek a loan modification with your current lender. I live and work in the Chino Hills area.... if you need advise..let me know. Thanks

Danielle Ervin
714-747-4663
danielle.ervin@yahoo.com

Doing the loan mod would probably be the best.

Will your husband qualify for a loan? If so then yes you can, you can sell to anyone as long as the first will be paid off and there are no other liens on the property. You can go through just title and escrow, or you can have a realtor help you with all of the paperwork and the laws of transfer in California.

Diana

Can you do an FHA refi? You only need 2.25% equity in the property to qualify. Rates are in the low 5's.
Would that work?

Luke Allison
Bank of America Home Loans
828-777-8828
luke.allison@bankofamerica.com