Foreclosure & Signing over my house to my daughter

ucppsych · Joined: 11 Apr 2008 Posts: 1 1.35 Dollars($)

I have fallen behind in my mortgage payments due to being fired while on disability. I have a lawsuit against the company for 2 years now. I am starting a new job next week, but today received a summons for foreclosure.I do not want to lose my home I've had for 17 years. Can I sign my home over to my daughter and could she get a good mortgage company to pay off this one that I had at a lower fixed rate? If so, how do I even begin this process before it's too late?

jameshogg

Hi Ucppsych,

Welcome to forums.

I feel for you really but it's good that you will be starting off with another job. Now having a source of income in these days of inflationary changes is indeed very troublesome. But since you have received the summons for foreclosure, it implies that your bank/lender has filed a foreclosure. But did they send you the notice of default prior to this?

It’s ok if you have signed over your house to your daughter but did you inform the lender about it? And moreover, does your loan contract ask you for any penalty regarding this? Please check out such things. Also, your daughter can refinance this existing loan if she is able to satisfy the credit and financial standing required to qualify for the loan.

You need to talk to the lender about the refinance and see if he can offer the loan or else you have to look out for another lender. But it should be done quickly because the notice of foreclosure has already been filed.

Thanks

larry · Joined: 27 Jun 2007 Posts: 3328 473.51 Dollars($)

Hi Ucppsych,

I am really sorry to hear your situation. You can quitclaim the property to your daughter but you will have to inform the lender about the quitclaim. . Can your daughter be able to take over the mortgage?

So talk to your lender ASAP and see if your daughter can be approved for refinancing the mortgage.

Please update us with your situation and feel free to ask if you have any further questions.

Best of luck,
Larry

gmakerley · Posted: Sat Apr 12, 2008 5:08 am Post subject:

contrary to popular opinion, most lenders are not enthused about "bailout" loans. these are loans that are not "arm's-length" transactions, i.e., between disinterested parties.

turning the property over to your daughter and then asking the lender to allow her to reinstate the mortgage and pick up the payments is not a realistic solution.

what you must do is contact your lender immediately, affirm your desire to retain the home and discuss with them whatever your ability is to resume payments and keep them current. if this involves your daughter's assistance, that needs to be made known to your lender. the likelihood of her being able to obtain new financing while there is a foreclosure action pending is pretty slim.

if you have an attorney with whom you work, it would behoove you to engage him or her to walk with you in this endeavor.

banks are not in the business of foreclosing on people's homes. it is a last gasp effort to provide the bank with the return of their funds that they loaned out to a homeowner. foreclosure is not good business, and it is definitely not profitable for lenders.

working with your lender to the best of your ability is the smartest thing you can do.

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