Posted on: 21st May, 2008 08:43 am
how does a bankruptcy filing of the grantor affect a quitclaim deed and potentially hinder the sale? My sister's ex-fiance filed for bankruptcy shortly after (within 90 days) signing a quitclaim deed when they split and he moved out of their house. I believe both of their names were on the mortgage at the time. She is days from closing on the sale of this house (it is now 3 1/2 years after the split) and has been told by her attorney that there may be a problem and she may not be able to sell because of his bankruptcy filing. How is that possible when she has been making all her house payments for over 3 years??? Can you help us understand?
Hi jreardon,
Welcome to the forum.
I think that her attorney rightly said that there may some problem to sell the property as her ex-fiancé has filed bankruptcy. Why have not she asked him to quitclaim to her he moved out of the property 3 1/2 years ago? Now as he also had the share of ownership of the property and quitclaimed it just before filing the bankruptcy, it may be considered as a fraudulent conveyance.
Feel free if you have any further questions.
Best of luck,
Larry
Welcome to the forum.
I think that her attorney rightly said that there may some problem to sell the property as her ex-fiancé has filed bankruptcy. Why have not she asked him to quitclaim to her he moved out of the property 3 1/2 years ago? Now as he also had the share of ownership of the property and quitclaimed it just before filing the bankruptcy, it may be considered as a fraudulent conveyance.
Feel free if you have any further questions.
Best of luck,
Larry