QUESTION
Are banks obligated by law to transfer mortgage loan from one person to another if deed in lieu was exercised between them?
Asked on Mar 21st, 2012 on Foreclosures - Missouri
More details to this question:
I'd like to sell my home but it's under water. My mother would like to purchase my home but does not have the income qualification or the down payment to purchase via a mortgage loan. I was told by a friend that deed in lieu can be used to have my mother become a junior lien holder, at which point the bank is obligated to transfer the loan to my mother without any regards to her income qualification. Is this true? If so, is there a specialty paralegal to be consulted when drafting the deed of lieu?
4 ANSWERS
Commercial Bankruptcy Attorney serving Davie, FL
at
Law Office of Jeffrey Solomon
Update Your Profile
You have been provided incorrect information. The bank is under no obligation to release the property or you from the obligations of the note and mortgage.
Answered on Mar 23rd, 2012 at 5:58 PM
Chapter 7 Bankruptcy Attorney serving Clinton, MS
at
Timothy Kevin Byrne Attorney at Law
Update Your Profile
I do not know where that advise came from . The mortgage holder is the decider of the issue you presented.
Answered on Mar 22nd, 2012 at 7:36 PM
Jeffrey Marc Siskind
A deed in lieu is a deed to the lender which, in its pure form, ends the foreclosure and eliminates a deficiency. A short sale is a lender-approved sale to another 'third party' buyer.
Answered on Mar 21st, 2012 at 5:50 PM
Mortgage companies and banks are not obligated to transfer the loan. However there are other ways to proceed.
Answered on Mar 21st, 2012 at 3:49 PM