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Barrister
Barrister, Lawyer
Category: Real Estate Law
Satisfied Customers: 38224
Experience:  17 years real estate, Realtor. Landlord 26 years
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I have 2 properties with mortages. Each is in a trust. I

Customer Question

I have 2 properties with mortages. Each is in a trust. I have not been able to sell them and as I am nearing retirement, I am concerned I will not be able to pay the mortgage. Can I foreclose on the properties without damaging my personal cresit?
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Barrister replied 1 year ago.

Hello and welcome! My name is ***** ***** I am a licensed attorney who will try my best to help with your situation or get you to someone who can.

Expert:  Barrister replied 1 year ago.

When you initially took out the mortgages, did you take them out in your name or did the trustee sign for the mortgages?

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thanks

Barrister

Customer: replied 1 year ago.
I took them out in my name
Expert:  Barrister replied 1 year ago.

Ok, then unfortunately, you remain personally liable for the debts even if you deeded them into a trust. It doesn't matter whose name is ***** ***** deed, it is the mortgage that determines who is liable in the event of a default.

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So if you were to allow the properties to go into foreclosure and they didn't sell for what was owed, then the lender could seek a deficiency judgment against you personally and attempt to enforce it against any wages and non-retirement assets.

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I am very sorry that I don’t have better news, but please understand that I do have an ethical and professional obligation to provide customers with legally correct answers based on my knowledge and experience, even when I know the answer doesn’t make the customer happy...

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thanks

Barrister