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lchoo · Joined: 01 Dec 2009 Posts: 1 1.39 Dollars($)

My fiancé and I purchased a home in California 5yrs ago. Because we had bad credit, we financed the property under his mother’s name. She holds title and the loan. We are in the process of buying another home (under my name and credit this time), but want to short sale the original property.
Ideally, I want have the title transferred to my fiancé, prior to short selling or letting the house foreclose so as not to ruin his mothers credit, instead his own.
How does this work if the loan is still in her name? Do we need to transfer title, and refinance the home under my fiancé’s name? I imagine it will be difficult to refinance right now, because the property has depreciated over $100K since the purchase date (we have an interest only loan.)

adonis · Posted: Tue Dec 01, 2009 8:27 pm Post subject:

Hi lchoo,

If you want that the short sale should not affect your fiance's mother's credit score, then your fiance will have to refinance the loan in his name after the title is transferred to him. Once the mortgage is in his name, then he can apply for a short sale and sell off the property. As the property value has depreciated, it would be difficult for your fiance to refinance the loan. In that case, his mother will have to apply for a short sale.

gmakerley · Posted: Wed Dec 02, 2009 2:32 pm Post subject:

khoo, do you love your prospective mother in law more than you do your fiance? i guess so, since you're seeking to ruin his credit while trying to salvage hers.

what you hope to do doesn't make sense for other reasons anyway, but i just had to ask that cogent question.

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