Posted on: 08th Nov, 2007 08:33 pm
i signed a quit claim deed, transferring my home to my parents because i wasn't able to work, and i moved into my boyfriend's home. my parents have put about $10,000 into it since i quit claimed it to them. there is still a balance on the house and they took over the contract.
after divorce, i was left with a high attorney bill for divorce/custody and medical bills, totalling about $26,000 so i'd like to file chapter 7. i was told by an attorney that no matter how innocent the action of quit claiming my house to my parents because they had been helping me out, it would look fraudulent. he said i needed to have my parents quit claim it back to me so i could file chapter 7 and then, after the bankruptcy goes through, i could quit claim it back to them.
although i now see how i shouldn't have done the quit claim before filing for bankruptcy, my parents refuse, saying they're afraid that somehow something will go wrong and they'll lose the house.
what do you suggest?
after divorce, i was left with a high attorney bill for divorce/custody and medical bills, totalling about $26,000 so i'd like to file chapter 7. i was told by an attorney that no matter how innocent the action of quit claiming my house to my parents because they had been helping me out, it would look fraudulent. he said i needed to have my parents quit claim it back to me so i could file chapter 7 and then, after the bankruptcy goes through, i could quit claim it back to them.
although i now see how i shouldn't have done the quit claim before filing for bankruptcy, my parents refuse, saying they're afraid that somehow something will go wrong and they'll lose the house.
what do you suggest?
Hello Angie,
When did you sign and record the quit claim to transfer the ownership?
If it is within a short period of time then your case might be considered as a fraud in order to keep the property away from the bankruptcy. If not, then the copy of quit claim deed itself will prove your intentions.
Have you spoken to your lender about doing a reverse quit claim to get the house in your name and then again put it back to your parents' name after the bankruptcy? I don't know how far is this logical and applicable but I think your lender will not give his consent for this.
Why are you considering bankruptcy ch 7 and not 13?
Is it because you don't have any source of income to repay the loans? Why are you not trying for a part time job or something like that? Is there a real problem behind that?
A Ch 13 could have been a better option where your house as well as other assets were protected and you could plan to repay your loans with the help of alternative repayment options.
When did you sign and record the quit claim to transfer the ownership?
If it is within a short period of time then your case might be considered as a fraud in order to keep the property away from the bankruptcy. If not, then the copy of quit claim deed itself will prove your intentions.
Have you spoken to your lender about doing a reverse quit claim to get the house in your name and then again put it back to your parents' name after the bankruptcy? I don't know how far is this logical and applicable but I think your lender will not give his consent for this.
Why are you considering bankruptcy ch 7 and not 13?
Is it because you don't have any source of income to repay the loans? Why are you not trying for a part time job or something like that? Is there a real problem behind that?
A Ch 13 could have been a better option where your house as well as other assets were protected and you could plan to repay your loans with the help of alternative repayment options.
hi angie,
welcome to our forums.
it's not that you'll lose your home if you file chapter 7 bankruptcy. it will depend more upon your state laws. if the primary home is an exempt property, then you won't lose the home as it will not be considered as an asset which can be sold off to pay your creditors or lenders. moreover, if there is an homestead exemption on your property, then depending upon the laws in your state, you may even get a certain value of your home equity exempt from bankruptcy.
i would also like to mention here that you may have quitclaimed your property. but it's been quite some time now, isn't it? so, why would it be considered as fraudulent transfer. rather, had you filed bankruptcy and then quitclaimed, only then it could have been considered as fraud. i think it's better if you get it cross-checked by another attorney. and, just in case you feel like checking whether you will qualify for chapter 7 or 13, go through a previous discussion on this issue.
good luck
welcome to our forums.
it's not that you'll lose your home if you file chapter 7 bankruptcy. it will depend more upon your state laws. if the primary home is an exempt property, then you won't lose the home as it will not be considered as an asset which can be sold off to pay your creditors or lenders. moreover, if there is an homestead exemption on your property, then depending upon the laws in your state, you may even get a certain value of your home equity exempt from bankruptcy.
i would also like to mention here that you may have quitclaimed your property. but it's been quite some time now, isn't it? so, why would it be considered as fraudulent transfer. rather, had you filed bankruptcy and then quitclaimed, only then it could have been considered as fraud. i think it's better if you get it cross-checked by another attorney. and, just in case you feel like checking whether you will qualify for chapter 7 or 13, go through a previous discussion on this issue.
good luck
I have bad credit,had to put a ton of money down to get my house mortage i have a 9% apr now they are down to 5% should i put the name and mortage in my parents because they have great credit? it there a way to re-finance with bad credit? or any way to keep house in my name just have them do the re-fi?.....please help broke with high apr
hi maria!
welcome to forums!
with the current market situation, it will be difficult for you to refinance the property with a bad credit. you can still talk to the lender and check out the option of refinancing.
if it is possible for you, then you can quitclaim your property to your parents who can then refinance the mortgage. once they refinance the property, they may get lower rates and conditions to pay off the mortgage dues.
feel free to ask if you have further queries.
sussane
welcome to forums!
with the current market situation, it will be difficult for you to refinance the property with a bad credit. you can still talk to the lender and check out the option of refinancing.
if it is possible for you, then you can quitclaim your property to your parents who can then refinance the mortgage. once they refinance the property, they may get lower rates and conditions to pay off the mortgage dues.
feel free to ask if you have further queries.
sussane
My husband was fired 4 yrs ago and has been trying to work on his own while applying for jobs. In the mean time we have been paying billy etc. with credit cards. We are in 250,000 worth of card debt. Our house is 3 mo delinquent. In the last 2 days we both have been hired for jobs. What should we do first? CH 7 BK or try to refinance. We have a 450,000 morgage. Under the new Obama laws do we have any hope? We will make approx 90,000 income. Any suggestions?
Hi Sammy,
It's nice to hear that both of you have finally got a job.
But why do you want to file bankruptcy when you have got a job? A bankruptcy would hurt your credit badly and it will take almost 7 years to repair that damage on your credit score. I think refinance would be a very good option as with the refinanced money you can pay off your existing debts.
It's nice to hear that both of you have finally got a job.
But why do you want to file bankruptcy when you have got a job? A bankruptcy would hurt your credit badly and it will take almost 7 years to repair that damage on your credit score. I think refinance would be a very good option as with the refinanced money you can pay off your existing debts.
we are in forclosure, i am trying to work out a loan modification with the bank. I sent them everything they have asked for. The judge gave me an extention to see if we coud ma=ybe sell the house. No luck. MY hubby and I both lost our jobs. We then got jobs I send in the morg payment and they send it right back. Is there anything we can do. They still have not made a decision and we go to auction next month
Hi joey,
I think you should talk to the lender and inform them that you have got the job and you would like to continue making the payments. I don't think the lender would be too keen on doing a foreclosure when they know that you can afford to make the monthly payments.
I think you should talk to the lender and inform them that you have got the job and you would like to continue making the payments. I don't think the lender would be too keen on doing a foreclosure when they know that you can afford to make the monthly payments.
My wife went back to work from maternity leave and they decided to let her go. My mortgage is about $1600 a month and i earn about 42k. With our newborn, our six year and every other bill I dont think i can make my monthly payments. Some people say to file bankruptcy rather than foreclosure. I dont think my bank is going to reduce my mortgage enough to make it. I also heard by giving them info on my financial status for a modification it can only speed up the foreclosure. What can be the best solution?
Hi humble,
Both bankruptcy and foreclosure will hurt your credit badly. They should be your last resort, when no solution works for you. At this point I think a loan modification would be a good option for you as it can help you manage your debt better. I think you should talk with teh lender regarding this and you should also send them a hardship letter stating clearly how difficult your current situation is and how you think this modification will help you in this condition.
Both bankruptcy and foreclosure will hurt your credit badly. They should be your last resort, when no solution works for you. At this point I think a loan modification would be a good option for you as it can help you manage your debt better. I think you should talk with teh lender regarding this and you should also send them a hardship letter stating clearly how difficult your current situation is and how you think this modification will help you in this condition.
after having a foreclosure, how long until you can buy another house.
Hi sher,
After foreclosure, you will have to wait for at least 3-4 years in order to get a mortgage. If you try for a mortgage before that, the lenders may charge you high rates of interest.
Thanks
After foreclosure, you will have to wait for at least 3-4 years in order to get a mortgage. If you try for a mortgage before that, the lenders may charge you high rates of interest.
Thanks
I have had my hours at work severly cut (by almost 50%) and will not be able to make the next mortgage payment. This will be the first payment I have missed. I owe almost twice as much on the principle as the house is worth. I no longer want to keep the house, and do not plan on trying to buy another home for the next 4-6 years. How should I deal with the bank in trying to give them the house back? Would a DIL be the appropriate course? My realtor says there is no way to sell the house in this current market.
Hi mum
You can definitely apply for a deed in lieu. This will help you in selling off the property. However, you'll not be liable for the deficient amount resulting from the sale of the property. But this will effect your credit and your credit score will be reduced by 250 points.
Thanks.
You can definitely apply for a deed in lieu. This will help you in selling off the property. However, you'll not be liable for the deficient amount resulting from the sale of the property. But this will effect your credit and your credit score will be reduced by 250 points.
Thanks.
Hi. I am in foreclosure. My sell date is on hold pending a reinstatement. I would have to pay 107k by 11/21 in order to reinstate my loan. I was denied the making homes affordable mod loan because I could not make any of the arranged payments during the alloted time frame. Then a bill was past on 9/25 that states if you are denied the obama plan that you are not eligible for any other type of mod loan. I was not told this by my lender nor was i notified. I tried to make a couple of payments but i was told to hang on to it and I will have to start the mod loan process over again with chase but they said now I can't because of this new bill. They are absolutely not budging. They said I either have to quick sale or reinstate.
What should I do.
What should I do.