Posted on: 02nd Mar, 2007 11:12 am
i am getting ready to close on a home loan that is in my name only. my partner is getting ready to declare bankruptcy and her attorney advised that she be put on the deed. i don\'t want to be financially encumbered with her that is why i\'m doing loan on my own. is it possible to have a separate contract that specifies that she has her name on the deed for bankruptcy purposes only and no right to value in the home?
Scoot, if her name is included in the deed then she will automatically get rights over the house. I am not aware of whether any such special contract can be made. You should contact an attorney to know if it is legally possible.
Hi Scoot,
Let me tell you that if she is filing chapter 13 then it will not have any affect even if she is named on the deed.
In chapter 13 there is a repayment plan made out which the person is required to follow to pay off his/her debt. In this type of bankruptcy the property is not sold to recover the debts.
Lindstrom
Let me tell you that if she is filing chapter 13 then it will not have any affect even if she is named on the deed.
In chapter 13 there is a repayment plan made out which the person is required to follow to pay off his/her debt. In this type of bankruptcy the property is not sold to recover the debts.
Lindstrom
Welcome Scoot.
I don't think such a contract exists. But I would like to know the type of bankruptcy your partner has filed. However, be it any type of bankruptcy, it will not affect your credit score as you are not filing it. But then if her name is put on the deed, your lender may not be willing to close on the loan.
No lender would like to offer loan against a property, the co-owner of which has filed for bankruptcy. This is because the co-owner may have to use his home to pay off his debts and get discharged from the bankruptcy.
Thanks.
I don't think such a contract exists. But I would like to know the type of bankruptcy your partner has filed. However, be it any type of bankruptcy, it will not affect your credit score as you are not filing it. But then if her name is put on the deed, your lender may not be willing to close on the loan.
No lender would like to offer loan against a property, the co-owner of which has filed for bankruptcy. This is because the co-owner may have to use his home to pay off his debts and get discharged from the bankruptcy.
Thanks.