2 replies to this topic

[davidleft]

I am on title of a house with another person - not related. However, the mortgage loan is only under my name. I can no longer keep up with the payments and I want to give the property back to the lender (deed in lieu of Foreclosure). Does the other person who is on title have to sign off or can I just contact the lender myself and give the house back? The property is in California

[Fallen]

"Does the other person who is on title have to sign off or can I just contact the lender myself and give the house back?"

Have you contacted the lender about this?  We can't know what's what with regard to your mortgage.  You also may be presuming that the bank is willing to go this route when it isn't.  (I also trust only your interest is put up as collateral for the mortgage and you aren't referring to a situation where the lender has no idea that someone else co-owns the property because you signed over part of your interest to them after you got the mortgage.)

 

[chase11]

Foreclosure would wipe out everything recorded after the TD to foreclosing lender was recorded including subsequent deeds signed to add other people or liens on title. Absent foreclosure a deed from you to bank  ( or anyone else) only transfers your  present ownership interest  and your right to occupancy in the property.   I doubt Bank will have any interest in a deed to  partial ownership, HOWEVER keep in mind that if you get a quitclaim from the other guy on Title, then you can deed all title to the bank.   But don't raise that plan in a rush when you contact them. Keep in mind they can foreclose (even if the loan  was current ) simply cuz you added someone on title (alienation clause) so if they don't already  know, you may NOT want to offer that info. up front. But do contact the bank before you do anything else & see if they will do a deed ( to full ownership) in lieu of foreclosure  & agree to debt forgiveness  IE  agree not to chase you for any balance & give you back the orginal promissory note upon a deed of full title to the bank....  Also talk to bank about "cash for keys"  Many banks will pay for possession whether they get title by foreclosure  or deed. Dealing with occupants is a seperate headache issue. Most banks will pay for keys if asked ( turn over of keys by occupants gives up possession) . You can negotiate this payment to you by asking Bank to pay equivalent of your estimate of how much money you need to pack up & move everyone out PLUS lets call it "incentive money"  for saving them the court costs and fees of doing an unlawful detainer action to remove occupants and agreeing  that you will leave the property clean and  take care not to damage it or remove any permanantly attached fixtures.