In big trouble

Asked by Akarmiloff, San Diego, CA Fri Sep 26, 2008

I transferred the deed to my house to a "friend" through escrow, and was going to carry the loan for her. I didn't know I was supposed to have a separate contract to make sure she made payments. She stopped making payments in February, stating that I was facing foreclosure anyway (before this my FICO was 780). Now my credit is ruined, my only option is to wait for foreclosure proceedings, which is probably months from now, while she collects free money from a tenant she has living in there. I can't even do a short sale, the house is so far upside down. I'm so depressed and hurt, not to mention broke, she ruined my life. What can I do? How do I get Countrywde to speed up the foreclosure process?

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Anna Hershey, , 92037
Fri Jul 2, 2010
Your situation is probably the best reason, not to be your own agent, a real estate agent would have prepared all the right documents, and you would have been protected, this is a very painful and costly lesson. You need to document all that ensued, I hope that there is a "paper trail" to prove that it was not your doing, and perhaps when needed for future transactions you will be able to bring it up, and not be penalized for your "friend's"missdeed.
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Scott Godzyk, Agent, Manchester, NH
Sat Sep 27, 2008
Your best bet is to see an attorney immediately, you may be able to reverse it as you can not transfer ownership without paying off the mortgage unless it was a non qualified assumption or you let your mortgage company know and they approved it. if not right there are your examples to overturn it. as well if you were under duress. get to the attorney now, you may be able to go to court to get a cease and desit or some sort of relief, only an attorney can guide you as to your states law. good luck with working it out. Lesson learned ..dont do business with friends and relatives.
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fredeckert, Agent, San Diego, CA
Sat Sep 27, 2008
FI brought up a good point with the escrow question. You indicate you transferred the deed through escrow. Which one? Title Company, Independent, Broker owned etc.? This doesn't sound like something an escrow company should do and you may have recourse there. If this was to have been a sale, then you should have gotton title insurance too. If that was the case, you could go back to them. The attorney recommendation is sound, particularly if you had a notice of default on the property before your "friend" bought it and you were living in it at the time (California Civil Codes 1695 and/or 2945 may apply). You can call Brian Cain, of the Cain Law Group, at 858.277.2122, for some help. You can also call me if you have more questions-no charge. 619.507.5688 . I am not an attorney, however, I do specialize in foreclosure and foreclosure prevention and can offer you some other suggestions.
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Fl, , Alameda, CA
Fri Sep 26, 2008
What kind of escrow was that that would just transfer the title without paying off the liens including the mortgage lien? In this case, you would have been the friend/buyer's lender, and you should have paid the existing mortgagee! Otherwise the buyer does not have clean title, and should inherit all liens on the title. If the mortgagee doesn't know the title has been transferred, may be you should notify them, and let them chase the new title-holder! This is a bizarre case. It all depends on who is goofier. I'm no expert, just my opinion. You could get a real estate attorney for $300/hr.
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David, , La Jolla, CA
Fri Sep 26, 2008
Who advised you to transfer the deed over? Also, were you under the influence of any narcotics or alcohol at the time of signing. Or if you were duped into the deal you might have a leg to stand on. EIther way a good real estate attorney will better assist you. However, you would have to absorb the attorney fees...
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