My mother past away and put my name on the title to the house but not on the loan.?

Question

My question is can I give the house back to the bank without it affecting my credit. I don't want the house it is in New Mexico and I live in CA. Also, she had just refinanced the house and owes way more than we could get for it.

Answer 1

You will not have any record of loan in your name going to foreclosure.  

But, as property owner, you will have a record of having lost property through foreclosure.  You name will be in the public notices, etc.

There is a question that is part of loan applications:

  "Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?"

That question does not ask you if you were on the loan, but only asks if you were property owner of a property lost in foreclosure.  This could adversely affect you in seeking a loan.

Answer 2

Call the lender and explain the situation.  It's not your loan, so you are not responsible for the payment.  If you don't refinace or sell the house, the bank will eventually foreclose.  This will effect you in some way because your name is on the title, but I really don't know how except the house will be gone.  Do you have a lawyer for the estate?  They could probably give you some advice about what to do.

Answer 3

Speak to the bank (and a lawyer) before doing anything.  If you really just want to wash your hands of the house, it may be possible to just quit claim deed it over to the bank.

Answer 4

Talk to the bank and see what your options are. Alot of times the bank will accept less than what is owed to avoid putting the property on their books. This is called a "short sale"

Answer 5

It will not affect your credit, as your credit was never involved in the first place.  It was your mom's credit that had purchased the home.  You were simply on title, which has nothing to do with the loan on the home.

If you can't sell the home for more than its combined liens, then you might well consider giving it to the bank.  This is called a "deed in lieu of foreclosure", a.k.a. "a friendly foreclosure".  

I repeat, the only credit that can be harmed is the credit that was used to purchase the home.  This is the credit of the mortgagor, your mother.

And by the way, I'm sorry about your mom.

Answer 6

I would get an attorney just to make sure all of the legalities are handled properly .....

You don't need this to pop up down the road when you are trying to buy another home or car ect .....

Answer 7

Absolutely, you are not responsible for the loan, your mother was.  

If the house was worth more than the loan amount you would have to pay the loan to retain your equity.

If it is truly worth less than what is owed, give the bank a quitclaim deed.  Do not sign a warranty deed.  

A quitclaim deed just conveys whatever rights you have in the property.  It promises nothing, just gives them what you have.

A warranty deed promises things that you do not need to promise.  Please do not sign one.

Where in NM is the house and how much is the mortgage?

The market here has slowed way down and building had pretty much stopped, but prices have only dropped about 3%.

I am looking for more farmland in the central Rio Grande Valley in NM , preferably with a small home.