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How can I protect my parents in this?

Posted on: 13th Apr, 2010 06:02 am
A couple years back my wife was injured in a car accident and can no longer work. We worked with the mortgage company in an attempt to keep our home. IN the end they were no help at all. Even the government programs were no help. We were forced to go through a short sale and we now have an accepted offer.
So now we need a place to live. We were able to aquire a fixer-up property from a recent injury settlement (much less than we owed on the mortgage) but gave the money to our parents to buy the property in their name in order to shield the money from the Mortgage company in case they decided to try to reclaim thier "losses" and go after the money.
The goal is to have them Quit Claim the property back to us at some point. I want to be sure that my parents are protected from any negative ramifications now or in the future. Do they have to prove they are living in the property for a period of time and if so, how is this usually verified?
Hi Guest,

After a short sale, you would be liable for the deficient balance resulting from the sale of the property. If you do not pay the balance amount, the lender can place a lien on any other property that you own. It will not come after the property that your parents own. As far as I know, there is no such time limit in regards to staying in the property.

Thanks
Posted on: 14th Apr, 2010 12:05 am
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