Newsflash: Business Deal Gone Bad – House into Foreclosure – How much info to give bank?

Long story (somewhat) short…My Grandmother helped my wife and I purchase a home a number of years ago with her estate plus my and my wife’s name on title. My Grandmother had a judgement issued against her (and her estate) in excess of $1m which encompassed this property. She has since passed and the judgement remains.The property was in her trust to pass to myself and my wife, but because of the judgement, title issues, trust/probate issues, and family/trustee issues, we are unable to transfer and/or sell.We’ve spent years and tens of thousands of dollars speaking to numerous specialists and lawyers and it basically came down to…We’re f*cked. We can spend another $50-$100k+ petitioning the courts, the judgement holder, assigning a trustee and, even with all of that, there’s only a slim chance of taking full possession of the property.We decided earlier this year to let the house go into foreclosure and take the loss. We know about the credit hit and are prepared for it. It sucks, but we’ve determined it’s the best course of action.That being said, we have informed the bank that we intend to let the house foreclose and have stopped all payments. We told them they can have the house and auction it to pay off the mortgage (house is not upside down and has equity).They of course are insisting (demanding) that we file for a mortgage modification or deed-in-lieu and have sent over loads of paperwork asking in detail about all of our other financials.We don’t qualify for a mortgage modification because it is not a primary residence and because of the judgement. A deed-in-lieu is not possible, also due to the judgement.I’m of the mindset of giving them nothing. They of course want everything. I really don’t need them knowing about our salary, primary household and any other assets. I feel like any info provided will be used against me (as they say, “any information provided will be used to satisfy a debt”).With all that being said…Is there anything I should be trying to get the bank to agree to our plan of action or just let the foreclosure process make its normal course of action? What (if any) information should I provide to them?A few notes: -House is in California -House is vacant – Not a primary residence -House has some equity – Probably enough to pay the mortgage in full. Bank said if it forecloses, they keep any extra proceeds -House is in personal names (not LLC)

Read more at https://www.reddit.com/r/RealEstate/comments/6liqod/business_deal_gone_bad_house_into_foreclosure_how/?utm_source=ifttt

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