Legal Question in Consumer Law in California

Other than refinancing, there are two choices for transferring property that has a mortgage on it: 1. Just deed it anyway and hope the lender doesn't find out, declare a default, and foreclose; 2. pay off the debt. You should also know that it is almost never a good idea to give property to a child while you are alive. It will almost always make you liable for significant gift taxes, and it will increase their capital gains tax when they sell the property. It is far better to put it in a trust for them, which is tax advantaged and will not trigger a default with the lender as long as you are the trustee and the trust is revokable.

I agree with Tim. A trust is by far the better method and you avoid gift taxes.

However, there are lots of ways to achieve a transfer. Really, you should speak to an attorney about the result you are trying to achieve. Most attorneys do not charge for an initial consultation. You have nothing to lose by speaking to an attorney, and you may avoid some hefty gift taxes in the process.

If you are looking for an attorney who does not charge for an initial consult, give me a call.