Legal Question in Real Estate Law in California

Deed in Lieu of Foreclosure...is it our best option
We are in CA and our home loan is in my husbands name only. We are joint on the title. We spent the last 5 years buying our way out of ARM loans and finally have a 5.875 fixed 30 year. The problem is, after doing so many refi's to get to the right loan, we can't afford the mortgage anymore. We are not yet upside down on the loan and have had the home on the market for almost 3 month with no one looking. My husband also lost many overtime hours with his job (ouch). We knew we were going to get into trouble soon, so we called the mortgage company. There seems to be nothing they can do for us....we do not quailfy for forbearance, there isn't a loan better than the one we have so a refi is out and when we talked to them we were not behind in payments so there were no other options. Rather than completely deplete our savings on a house we know we can not afford, we stopped making payments in September. We are hoping to qualify for a deed in lieu....thinking that is our best option. If you know of any other options, please let us know. Since the loan is only in my husbands name, will it affect my credit?

Asked on 10/09/07, 10:03 pm

George Shers Law Offices of Georges H. Shers

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Re: Deed in Lieu of Foreclosure...is it our best option

Your credit will probably not be affected since you are not on the loan. Please see the earlier responses given to similar situations as yours.

Answered on 10/10/07, 1:40 am

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