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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Deed-in-lieu details... Posted by Ward-CA- on August 13, 2003 at 9:24 PM In Reply to: Deed-in-lieu in California posted by Kevin on August 13, 2003 at 6:16 PM : Hi, : I was wondering about deeds-in-lieu in California. If I find myself owning a house that has dropped in value, and I owe more than the house is worth, can I simply sign over the deed to the bank under this deed-in-lieu? Is this under my discretion, or can the bank that owns the mortgage reject this? Can they come after my other assets? So, for example, even if I could make the monthly mortgage payments, but I frivolously decide that I no longer wanted the house, could I enact this deed-in-lieu? : I am not concerned about my credit history, but just want to be aware of my rights. I am considering buying a house in the Bay Area, but I'm afraid that the housing market might burst and I might find myself owning a house that I overpaid for that I can no longer afford. I would rather kill my credit history than bankrupt my entire family.... : Thanks for any help, : Kevin =-=-=-=-=-=-=-=-=-=-=-=-=-=-=-= Kevin, No, in CA you can’t simply decide to deed your house to your lender in lieu of repaying the secured loan they made you. Such a deed, even if it was recorded, could be unilaterally reputiated by the lender and rendered worthless unless the lender expressly consented to its receipt. The question of whether you might be personally liable for any deficiency suffered by your lender, after the final disposition of your foreclosed property, depends on whether or not the loan was a convential, purchase money loan. If it wasn’t, if it was an FHA or VA loan, or a refinanced loan or other hard money loan made after the purchase of the property then you could be liable for a deficiency. Hope this helps. Follow Ups: The CA one action rule prohibits deficiency David 9:13 AM, 08/14/03 (2) Judicial vs non-judicial foreclosures Ward-CA- 3:09 PM, 08/14/03 (1) Re: Judicial vs non-judicial foreclosures David 5:01 PM, 08/14/03 (0) Re: Deed-in-lieu details... Kevin 8:30 AM, 08/14/03 (1) Re: Deed-in-lieu details... Kevin 8:54 AM, 08/14/03 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : Hi, : : I was wondering about deeds-in-lieu in California. If I find myself owning a house that has dropped in value, and I owe more than the house is worth, can I simply sign over the deed to the bank under this deed-in-lieu? Is this under my discretion, or can the bank that owns the mortgage reject this? Can they come after my other assets? So, for example, even if I could make the monthly mortgage payments, but I frivolously decide that I no longer wanted the house, could I enact this deed-in-lieu? : : I am not concerned about my credit history, but just want to be aware of my rights. I am considering buying a house in the Bay Area, but I'm afraid that the housing market might burst and I might find myself owning a house that I overpaid for that I can no longer afford. I would rather kill my credit history than bankrupt my entire family.... : : Thanks for any help, : : Kevin : =-=-=-=-=-=-=-=-=-=-=-=-=-=-=-= : Kevin, : No, in CA you can’t simply decide to deed your house to your lender in lieu of repaying the secured loan they made you. Such a deed, even if it was recorded, could be unilaterally reputiated by the lender and rendered worthless unless the lender expressly consented to its receipt. : The question of whether you might be personally liable for any deficiency suffered by your lender, after the final disposition of your foreclosed property, depends on whether or not the loan was a convential, purchase money loan. : If it wasn’t, if it was an FHA or VA loan, or a refinanced loan or other hard money loan made after the purchase of the property then you could be liable for a deficiency. : Hope this helps. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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