Posted on: 01st Apr, 2010 07:07 am
back in 2004 my sister, her husband and i bougth a house. i was living there and sharing mortgage but in 2005, i move out and did not pay a single penny. my name are both the title and the loan. in 2006 we are in the process of getting my own home because i got married. when we refinance the home i remove my name in the loan but retain the title in my name. now my question is, my sister and her husband are filling for bankcruptcy? will the bank come after me. but i never share a single penny since i move-out of the house since 2005. i'm afraid that my sister bankruptcy will drag me down? can i still file quit deed or something... can you please help me with this dilemma???
thank you
luisa
thank you
luisa
luisa, it's not crystal clear to me, but it appears that the refinance done in 2006 removed your liability on the home you all bought in 2004. it's peculiar that you would continue to be an owner of that property yet not be responsible for the loan, but that's not unheard of either. their bankruptcy could affect you to the extent that you're an owner, but the lender cannot seek repayment from you. transferring your interest in the home won't work because the courts will recognize that it's in reaction to the bankruptcy filing, and that's a no-no.
you should be fine...if the lender forecloses subsequent to the bankruptcy, be prepared to be included in that suit; but they'll still not look to you for payment.
you should be fine...if the lender forecloses subsequent to the bankruptcy, be prepared to be included in that suit; but they'll still not look to you for payment.
I kept my name in the title because my sister wants me to keep a part of the home or just incase they separated or divorced. So your telling me that when my sister file for bankruptcy, the mortage company will not come after me for payment. I don't want to loose own home and end up filing a bankruptcy as well. So what do I have to do to remove my name in the title. Is it still doable to do so or not? I just want my name tied in or have anything to do with my sister's house. I have not shared money for mortgage for over 4yrs. And we can't refinance the house because the value is so low about 500,000 less and no bank will take it. I need an advise.. thank you luisa
the difficulty is that now that she's filed her bankruptcy petition, you really can't be doing much with the title to the home. creditors are very antsy when someone files bankruptcy, and they will cry "fraud" quickly if something happens with one of the assets of the bankrupt. you ought to check with an attorney to get the lay of the land as far as you're concerned in this messy situation. i don't believe you run the risk of being hounded for any money, based on what you've said. it's just a matter of how much jeopardy there might be in trying to do a transfer of title at this time, considering the bankruptcy filing.