<prompt> Human: So, lets just say that someone takes out a loan on a house Well just say 100k and they pay off 40 of it, and they realize they can no longer pay it off.Is it possible to dodge a foreclosure by selling the house to a 3rd party like an uncle for 5k when you still owe 60k interest and then filing for bankruptcy? Whats to stop people from doing this?This isnt a situation I or anyone I know is planning on attempting, its just a curiosity that I have, how much you really own of your home when you have the property but the bank holds the mortgage.  <response>: The bank has to approve any short sale a sale for below the amount left on the mortgage. You cant transfer ownership of something belonging to another without their permission, and you dont own the house until that last mortgage payment is made.Simplified version without getting into the nuances of ownership vs liens. 