If you cannot refinance this mortgage for a better rate, you don't have a lot of options. Because of the fraudulent transfer act, any transfer of the property you do at this point would be subject to reversal by the creditor. The presumption in these cases is that you transferred the property into a trust or to another person to protect it from creditors - which is illegal. You would have to prove that this is not true. Unfortunately, this is very hard to do.
The best thing to do is offer the lender a deed in lieu of foreclosure. This actually avoids the foreclosure process and also prohibits the lender from seeking a deficiency judgment against you. The catch is that securing a deed in lieu of foreclosure is totally up to the bank, and it will not agree to this unless the lender believes that it can sell the property for at least what is owed on it.
If they won't agree, and the foreclosure sale doesn't generate enough money to satisfy the debt, the lender can seek a deficiency judgment and garnish wages, freeze accounts, place liens on your property, force the sale of your property, etc.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).