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  #10 ()
skekwoopy : Even if the bank forecloses on the house and sells the house on the market at a lessor value than what is owed on the mortgage your friend will still be responsible for what is left over on his mortgage loan...

(ie) A person has a home and owes a mortgage of $195,000 they stop paying the mortgage and the house is foreclosed on and sold on the market for $97,000 to you....The person then still owes a balance of $98,000 to the bank for the original mortgage...
Since there is still $98,000 owed on the mortage they will place a judgment against him for that amount...



When you transfer the deed to his name the house legally becomes his property, Since it is his property and he still owes a $98,000 judgment then a lien can be placed against the property to satisfy the judgment...

So basically he will still end up paying the amount of his orginal mortgage...

Now if he declares bankruptcy and gets the $98,000 judgment dismissed and then you transfer the deed into his name then you both could still run into legal problems such as
Fraud,
Conspiracy to defraud,
Violation of bankruptcy laws..
ect...

What your friend is basically suggesting is that you conspire with him to defraud the bank of a loan..
So tell them no...unless you have no reguard for your future such as having a criminal record or having to payout heavy fines ect ect..
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