Voluntary Deed Transfer in lieu of Forclosure

[owen]

What is the name of your state?What is the name of your state? Missouri

I purchased a home about 1 1/2 years ago. The mortgage was owner financed. Over the summer I got married and the previous owner agreed to buy the place back since we are going to live in my wife's house. The previous owner backed out on the deal at the last minute. I've made several improvements (new roof, replacement windows, etc...) to the house but it turns out it still isn't worth what I paid him for it. If I sell the house via a realtor I'm going to be out a substantial amount of money. I read something about a "volantary deed transfer in lieu of forclosure" on a HUD site. Is this something I could do?

Thanks.

 

[seniorjudge]

I read something about a "volantary deed transfer in lieu of forclosure" on a HUD site. Is this something I could do?

Yes, you can do a voluntary deed transfer in lieu of foreclosure. It will be a quit claim deed from everyone on title and spouses, if any, to the person/institution who loaned the money. It, in effect, wipes out the mortgage/deed of trust and puts title in to the person/institution who loaned the money. (Generally, the lender has to agree to doing this.)

Don't, however, give up on the idea of not selling through a real estate agent. Go talk to one first before you give the house back.

 

[owen]

Thanks and question

Thank you very much for your response. As it turns out I had a meeting with a realtor last night. She improved my outlook on what the house can sell for considerably.

Just in case that doesn't work out, is it possible to do the voluntary transfer if the lender (in my case also the seller) isn't "agreeable?"

Thanks.

 

[seniorjudge]

Just in case that doesn't work out, is it possible to do the voluntary transfer if the lender (in my case also the seller) isn't "agreeable?"

This is something you should ask the lender. Lenders generally do not want to be in the real estate business.

Good luck.