Given the vast number of complex variables involved with your situation, finding the “best solution,” unfortunately, is not something that can be squeezed into this forum. But I can provide some general information and links to resources that will hopefully be useful in helping you address your situation.
First off, consult with a qualified attorney. You mention that you have four properties, at least two of which you aim to pass over to your children while protecting them from the potential liabilities should the properties move into foreclosure. You want a qualified attorney with the necessary knowledge in the state and federal laws governing estate and property transactions to advise you on a matter as complex as this.
Then, when you and your attorney look to address the difficulties surrounding your mortgage loans, you may want to check out HOPE for Homeowners and see if you qualify for their program. The Hope for Homeowners program, initiated by the U.S. Department of Housing and Urban Development (HUD), helps certain homeowners refinance their mortgages into a 30- or 40-year mortgage to avoid foreclosure. Homeowners must have originated the existing mortgage before Jan. 1, 2008. The existing payment must exceed 31 percent of the homeowner's gross income. Visit the U.S. Department of Housing and Urban Development's HOPE for Homeowners Web site to learn about other criteria and details.
Another organization you and you attorney may want to consider is HOPE NOW, an alliance between counselors, mortgage companies, investors, and other mortgage market participants. The aim of HOPE NOW is to pool the collective resources of its members to assist homeowners in distress to help them stay in their homes by creating a unified, coordinated plan. Visit Hope Now for details.
I wish you the best of luck with your situation and, as you move forward, remember that almost all mortgage lenders don’t want to foreclose. Lenders typically lose money when they foreclose and it is expensive to manage and is stressful for everyone. So avoiding foreclosure is usually in the best interest of all involved.
I hope this information helps you Find. Learn & Save.