Legal Question in Real Estate Law in California

Re: I want to give back property to its owner

It depends on what the contract says. Unless the contract says something different the general rule is that he is entitled to all the money.

Re: I want to give back property to its owner

If you stop paying, the former owner from whom you

bought the property will almost certainly foreclose

on the property, taking it back from you. A

foreclosure will appear on your credit record and

make you look like a greater credit risk. However,

the former owner probably will not be able to recover

from you the difference between what the property

is worth and the amount you owe (called the "deficiency").

Thus, the worst thing that happens is that you lose

the property and get a bad mark on your credit. You should check

with your accountant regarding whether you would

realize income if the foreclosure actually saves you

money by making it so that you don't have to pay all

you owe. You can ask the former owner to accept a

deed in lieu of foreclosure. He doesn't have to

accept it, but if he does he gets the property without

having to go through a foreclosure, and you avoid the

bad mark on your credit. Before doing anything, however,

you should have your contracts reviewed by an

attorney who could give you more certain answers.