Hello,

NOD was filed a week ago. Hopefully, I can make this long story short.

Jennifer bought the house under her name (loan and title). She transfered title to Cindy. Cindy does not make payments, NOD recorded last week. Cindy uncooperative, not returning calls. Cindy has title, however Jennifer has loan.

No equity. What are Jennifer's best options? Lastly, are her other assets in jeopardy (2nd home, business assets, etc.)?

THANKS in advance.

What type of arrangement was made between Jennifer and Cindy? Was it a contract for deed or some type of other agreement? I hope for Jennifer's sake there was something solid, in writing, spelling out what would happen if Cindy did not pay.

If nothing was in writing, and the property is not redeemed, the property will go to auction. Cindy will get evicted, and Jennifer will have a foreclosure on her credit.

Jennifer may have other problems if there is an accelleration clause (due on sale) in the mortgage. As transferring title but keeping the mortgage would trigger that clause, if the bank knew about it. If intentionally hidden from the bank, Jennifer could be charged with mortgage fraud.

The property was the security for the loan, so other assets would not likely be at risk. However, if it goes to auction and the foreclosure is completed but there is a deficiency, Jennifer could get a judgment against her for the deficiency. Actually I don't think deficiency judgements are allowed in CA.

In other words, we need more information.

And contact proper legal counsel, as I am not.

Thanks for the resposne. I'm going to recommend legal counsel for Jennifer.