Quit Claim Real Estate to Friend

[iqanon]

My question involves real estate located in the State of: Ohio

This is a little convoluted, so please read through:

I inherited my mother's house this past year. The title is now in my name. I was unable to get refinanced because of my credit. I have tried 3 times to get a mortgage to no avail - all 3 attempts we in the early part of 2008. My credit has since become much worse.

So, the title is in my name. The mortgage is in my mother's name.

I could not make payments on the mortgage.

I found a buyer that was willing to make payments on the mortgage and pay a direct sum to myself. The buyer is a friend, and we are both willing to sign/do/create whatever documents or actions are needed.

The buyer (friend) will not likely get approved for another mortgage in this market, even though the buyer has had good credit and already owns a home (He 'bought' my home to take care of one of his family members. His family member is now living in the home).

We have a notorized and signed quit claim deed from April of 2008, but we did not file it yet.

I am now in credit card debt and have creditors beginning to come after me.

Questions:

1) *Ideal scenario question* Given all the drastic changes in the economy, and some of the changes in mortgage practices - is there any hope that I could now get the mortgage in my name and pay off some of my credit card debt (about $20k equity in the home), even though my credit score is now low (title is currently still in my name)?

2) Should we file the Quit Claim Deed to protect the 'buyer' from any possibility of my creditors placing claims on the property?

3) If we file the Quite Claim Deed, what should we list as the amount of compensation? $10? I have searched and seached and cannot find out what the tax implications are in this scenario. We, (the buyer and I) are seeking to pay the least amount of taxes and have the fewest headaches.

Any help or suggestions or even links to information would be so very appreciated.

I feel terrible about the financial situation I am in, and want to do everything I can to help and protect the buyer (friend) in this situation. They have gone above and beyond to help me.

thank you

[gigirle]

So, the title is in my name. The mortgage is in my mother's name.

1) You should try. There is equity in the home, this works in your favor.
2) NO, NO NO. Even IF you did, the transfer is a RED flag and likely get you in a HEEP of trouble that I'm sure your not looking for. The transfer alone is likely a breach of the mortgage loan agreement. They can call the loan due.
3)Generally, your taxed on the value of the property.

You should seek advice from a bankruptcy attorney first to see what your options are. You maybe able to keep the house protected and exempt. Then get a hold of someone at your bank or a mortgage company and talk to them. See what you need to do to get your credit where it needs to be to get a mortgage.

If selling is the last option...keep it on the books and do it right.

There are also other options like renting out the house. Your measure seems, (IMHO and based just on your post) too drastic, but I've been wrong before.