Well if by “trouble” you mean a foreclosure soon to be filed against you…then “Yes” is the answer. How exactly did the property get “out of your name” without a sale? If an actual sale took place the HELOC would have been paid off by the sale…and you’d be off the hook.

If you just signed a “Quit Claim Deed” over to someone giving your ownership rights to them without a formal sale and left mortgage(s) you’re responsible for still on the property…then you made a big mistake.

For one thing, there are “Due on Sale” clauses in every mortgage and HELOC which states if you sell OR transfer your ownership, the bank as the right to call their loan due and payable immediately. If you don’t have the money… they have the right to foreclose.

Secondly, as you have found out, leaving “others” to pay your mortgage obligations rarely works out. They never pay or pay late and your credit is ruined…or worse…the loan(s) go into default and you get a foreclosure on your record.

To solve this, get your ownership rights back the same way to gave them away…with a “Quit Claim Deed”…and start paying the mortgage on time…get it out of default. If you can’t afford the mortgage, then after you have your property rights back…sell the home and pay off the mortgage.

Good Luck

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