Posted on: 27th May, 2009 07:47 pm
i owned a home outright, but in the last year since i could no longer pay my taxes or the upkeep, i basically transferred the title (gave the house to my friend). i had an equity line on the home which i have still been having to use. i am possibly looking at filing bankruptcy because i am having to rob peter to pay paul. i live in florida and what will happen when they find out i do not own the home it is attached to any longer? can i include it in my bankruptcy?
Hi fl,
If the lender comes to know about the transfer of property, they will demand the outstanding loan amount and can sue you if you do not pay it off. The acceleration clause on the loan enables the lender to call the entire loan amount due, if the ownership of the collateral changes without their knowledge. You cannot also include the property in your list of assets under the bankruptcy as you have transferred its ownership to your friend and you no longer legally owns it. You can, however, get another deed signed by your friend and get back the ownership of the house.
If the lender comes to know about the transfer of property, they will demand the outstanding loan amount and can sue you if you do not pay it off. The acceleration clause on the loan enables the lender to call the entire loan amount due, if the ownership of the collateral changes without their knowledge. You cannot also include the property in your list of assets under the bankruptcy as you have transferred its ownership to your friend and you no longer legally owns it. You can, however, get another deed signed by your friend and get back the ownership of the house.
I think she is trying to find out if the equity line be included in the bankruptcy since I dont own the house any longer? Need help with this one.
hi ddt,
you should be able to include the home equity loan in the bankruptcy because though you have quitclaimed the property to your friend, you are still responsible for the loan. you may not be the owner of the property any more, but as you are liable to repay the loan, you can include it in your bankruptcy. have you talked with your bankruptcy attorney regarding this? what does he have to say about it?
you should be able to include the home equity loan in the bankruptcy because though you have quitclaimed the property to your friend, you are still responsible for the loan. you may not be the owner of the property any more, but as you are liable to repay the loan, you can include it in your bankruptcy. have you talked with your bankruptcy attorney regarding this? what does he have to say about it?