Legal Question in Real Estate Law in California

Re: Voluntary repossesion

What you're talking about is called "deed in lieu of foreclosure" and is an option that's not uncommon, especially in times of falling values. I suggest you research it on Google, or in real estate reference books, then if you feel comfortable with the concept, talk to your lender. It's more complicated if your first and second are with different lenders, of course.

Re: Voluntary repossesion

There is an option other than deeding the property back to the lender and making a bigger mess on your credit (even if it is bad now).

You could find someone to come in and simply take over your mortgage, and you can secure yourself by establishing an "All Inclusive Deed of Trust". The worst that will happen is that the lender could call the note under the due on sale clause, but chances are, they won't do that. Lenders do NOT want homes in their portfolio ... They want loans.

Call me for more information.

Re: Voluntary repossesion

I would recommend finding a buyer to take over your payments, which should not be hard to find as it is very attractinve for those with no credit. You will need an attorney to draw up the trust documents. Call me directly at 16192223504.