Legal Question in Real Estate Law in Maryland

You are now realizing what a big mistake you and your mother made in deeding the house over to you, as it has negatively impacted your credit. You didn't mention it, but it sounds like you may also be listed as a co-borrower in the mortgage. If the house is "underwater" in that you couldn't sell it for enough to pay off the mortgage and all the additional costs that have been incurred because of the default, you might see if the lender is interested in a deed in lieu of foreclosure, where they take the property back and forgive the mortgage. Of course, this leaves the issue of housing for your mother. Even if the lender is amenable to this, it will still have a negative impact on your credit score, although it may already be low because of the bankruptcy. If you aren't a borrower on the mortgage, you could simply deed your interest back to your mother, but that obviously doesn't resolve the problem for her.

You ought to consult with an attorney who specializes in this area, such as a bankruptcy attorney, or one who handles consumer finance, to see what course of action has the least impact on your credit. Your county bar association can probably refer you to someone who can offer you a consultation at minimal cost.

You don't specify is your mother is also a co-owner of your house, and whether you are obligated under the loan (did you sign the note?), or if you just signed the deed of trust (the item creating the lien on your house). You should take all the documents to a local lawyer to discuss your options for a short sale, deed in lieu of foreclosure, or simply giving the property up. But it seems clear you can no longer bail out mom. She may well have to move.