Posted on: 29th Jun, 2010 08:09 am
Am being foreclosed on a second home with mortgage since 2006. In some states, deficiency damages are alive and well.
Since I own property in several states, (MS, AL, MD, CA) with clear titles, would it be more advantageous for me to use quit claim deeds to a son to guard against any potential claims.
Or would the trust process be more effective?
Thanks, Chris
Since I own property in several states, (MS, AL, MD, CA) with clear titles, would it be more advantageous for me to use quit claim deeds to a son to guard against any potential claims.
Or would the trust process be more effective?
Thanks, Chris
Welcome ceealma,
If you want to avoid paying the deficient amount, then you can contact your lender and apply for a deed in lieu of foreclosure. If the lender agrees to your request, you won't be liable for the deficient balance resulting from the sale of the property. Thus, the lender will not come after your other properties in order to recover his dues. So, you won't have to transfer the properties to your son or place them in a trust.
If you want to avoid paying the deficient amount, then you can contact your lender and apply for a deed in lieu of foreclosure. If the lender agrees to your request, you won't be liable for the deficient balance resulting from the sale of the property. Thus, the lender will not come after your other properties in order to recover his dues. So, you won't have to transfer the properties to your son or place them in a trust.