Deed Transfer to avoid Foreclosure on record

[copaaz2005]

Any idea's out their about transferring your property into someone else's name/business to avoid the Foreclosure hit on you public record credit report? I awaiting discharge from ch7, mortgage already reporting zero balance and i'm just paying to stay at this point. Since i'm no longer financially obligated on the loan, just the title/property owner, wonder if I could transfer the property into another party's name to avoid the foreclosure hit? Anyone done this before?

[mickeyme]

From my understanding you will stay on title for as long as you are on the loan. Though it was included in your BK the loan is secured buy your property and since you name is on the loan then you name must stay on title. Years past (almost 5-8yrs ago) I have heard of homeowers adding someone else on title (famiily member or close friend) and allowing that to season anywhere from 6-12 months at which point they refi the loan out of their name and put the loan in the other person's name. In doing this the original owner can then be taken off title. This was rare and not as easy as it sounds. Most banks required proof that the other person was making the mortgage payments. This was just a way to avoid a sales transaction...but like I said this was a long time ago.
Good luck

[debee]

The scenario described in the post above is a way to get around the "due on sale" clause in a mortgage loan document. It makes it possible to transfer title without the lender calling the loan due immediately (aka: default).

In your case, you can transfer title but it won't stop the foreclosure. In order to get the property back the bank is going to have to go through the foreclosure process. You will be named because you are on the loan and also on the deed of trust/mortgage.

If you were to quit claim the title, you would not be the owner anymore. That's true. BUT you would still be on the original loan docs and the deed of trust/mortgage and that's where your name comes from when it becomes public record.

edit: you can also sell the property the usual way if you can get enough to satisfy the liens on it, or short sell it with lienholder approval or try to get a deed-in-lieu of foreclosure.