QUESTION
Can my brother and I give our mother's house to the bank?
Asked on Jan 01st, 2013 on Foreclosures - Arizona
More details to this question:
My mother passed away 4 years ago and her home was deeded to my brother and I as part of probate. We have been renting out the house but are now looking to get rid of it. Since the market is not good and we would not be able to sell it for what is owed, can we give it back to the bank? If so, will it impact my credit and my brothers credit since we are technically not on the loan?
7 ANSWERS
Civil Litigation Attorney serving Federal Way, WA
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Stasch Law LLC
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My suggestion is that you call the bank, explain the situation and ask them what your options are. A deed in lieu, which is how you can deed the house back, should not effect your credit. Also, you can just walk away and let the bank foreclose. If you are not on the underlying obligation, it should not effect your credit.
Answered on Jan 10th, 2013 at 8:20 PM
Chapter 13 Bankruptcy Attorney serving Winston-Salem, NC
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Love and Dillenbeck Law
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You can surrender the home. It will not impact either of your credit ratings unless you signed onto the loan.
Answered on Jan 10th, 2013 at 7:01 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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Banks sometimes agree to accept a deed in lieu of foreclosure. You have to negotiate with them. Be sure that they agree to waive any deficiency. Consult a skilled lawyer for further assistance.
Answered on Jan 10th, 2013 at 7:35 AM
Business Bankruptcy Attorney serving Raleigh, NC
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J.M. Cook, P.A.
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If you are not a party to the loan and you have simply Bern making the payments, you can surrender the house to the lender without any recourse to you.
Answered on Jan 10th, 2013 at 7:26 AM
Yes, you can. It is called a deed in lieu of foreclosure. Because your name will be associated with the deed, it may affect your credit, notwithstanding the fact that your names aren't on the loan documents.
Answered on Jan 10th, 2013 at 7:00 AM
You should attempt a short sale. A deed in lieu of foreclosure will read as a foreclosure on your credit. If you are current on your mortgage, the negative credit entry should be minimal.
Answered on Jan 10th, 2013 at 6:49 AM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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The following assumes you are living in Arizona and the property is located in Arizona. Assuming you have never been on the debt then your credit should not be effected. If it is then file a dispute with the credit reporting agency.
Answered on Jan 10th, 2013 at 6:46 AM