Posted on: 21st Jan, 2009 03:17 pm
Hi,
Here is my situation:
Two years ago I purchased my first home. While this is my home, both my mother's name and my name are on the title deed and thus both names are on the property tax bills that come through. This was done more so if something were to happen to me, the property was still hers, or should I want to transfer the property to her in the future if I got married.
I am the only borrower on the mortgage on the house and have been the one paying the property taxes for the house. Both always on time.
With the financial crisis my mother has found herself in financial trouble with her own home (her name only, I have no stake in those properties). We would however like to take her name off any paperwork on my home so I am not in danger of losing the property should she find herself in future financial problems. I know there is an option of a Quit Claim here. She has never claimed any financial stake in my home, nor paid any finances on it, or intended to claim it as an asset.
1) Can she still quit claim if she has defaulted on her own loans for her own property? My loan is not in default.
2) In taking her name off the title deed and property tax, am I protected if creditors were to go after her debts/homes?
3) What happens if she goes into foreclosure on her properties or bankruptcy in the near future?
4) Does her quit claiming transfer any of her debts onto me?
5) Is there a better option to protect my home here than a quit claim?
6) If she remains on the deed and loses her own homes, can the banks come after my property even though she is not on the mortgage?
Thank you
Here is my situation:
Two years ago I purchased my first home. While this is my home, both my mother's name and my name are on the title deed and thus both names are on the property tax bills that come through. This was done more so if something were to happen to me, the property was still hers, or should I want to transfer the property to her in the future if I got married.
I am the only borrower on the mortgage on the house and have been the one paying the property taxes for the house. Both always on time.
With the financial crisis my mother has found herself in financial trouble with her own home (her name only, I have no stake in those properties). We would however like to take her name off any paperwork on my home so I am not in danger of losing the property should she find herself in future financial problems. I know there is an option of a Quit Claim here. She has never claimed any financial stake in my home, nor paid any finances on it, or intended to claim it as an asset.
1) Can she still quit claim if she has defaulted on her own loans for her own property? My loan is not in default.
2) In taking her name off the title deed and property tax, am I protected if creditors were to go after her debts/homes?
3) What happens if she goes into foreclosure on her properties or bankruptcy in the near future?
4) Does her quit claiming transfer any of her debts onto me?
5) Is there a better option to protect my home here than a quit claim?
6) If she remains on the deed and loses her own homes, can the banks come after my property even though she is not on the mortgage?
Thank you
Hi angela,
Though she has defaulted on her loan, she can still quitclaim her ownership from your property. Yes, if she transfers the property to you before the creditors file any judgment against her, then your property will be protected from her creditors. If her properties goes into foreclosure, her credit will be badly affected and she will lose her home. In case of bankruptcy, she will face the similar consequences.
If she remains on the deed of your property and files for bankruptcy, the bankruptcy trustee can come after your property to liquidate it and pay off her creditors.
Thanks
Though she has defaulted on her loan, she can still quitclaim her ownership from your property. Yes, if she transfers the property to you before the creditors file any judgment against her, then your property will be protected from her creditors. If her properties goes into foreclosure, her credit will be badly affected and she will lose her home. In case of bankruptcy, she will face the similar consequences.
If she remains on the deed of your property and files for bankruptcy, the bankruptcy trustee can come after your property to liquidate it and pay off her creditors.
Thanks
Hi james,
Thank you for answers. So if I take her off the deed, people after her for money can't come after my house as a method to pay off her debts?
I have heard that if someone files bankruptcy within 24 months of quit claiming a property it is considered fraud. Will we run into this if she, at worst case scenerio (obviously she is working best she can to not have this happen), does in fact file bankruptcy within 24 months of quit claiming. Does the fact that I have always been on the title, and this is more taking her off the title to my home, show that the quit claim wasn't a fraudulent act?
Would it be helpful in this case to also draft a letter with a lawyer stating that she has never had equity interest in my property and her name on the title was for incidental purposes should anything happen to me while also doing this quit claim? You know, something to help show that this is MY home should her financial situation worsen later.
In worst case if she has to foreclose and/or file for bankruptcy so I lose my property completely to her creditors or only the portion of debt she owes? As it is my property right now has no equity but I can still keep up with the payments. So let's say her properties go and she still owes lenders 200k, my property is valued at 550k. Does the bank now have 200k of my home? Not quite sure what happens.
I am in California if the rules are different.
Thank you so much
Thank you for answers. So if I take her off the deed, people after her for money can't come after my house as a method to pay off her debts?
I have heard that if someone files bankruptcy within 24 months of quit claiming a property it is considered fraud. Will we run into this if she, at worst case scenerio (obviously she is working best she can to not have this happen), does in fact file bankruptcy within 24 months of quit claiming. Does the fact that I have always been on the title, and this is more taking her off the title to my home, show that the quit claim wasn't a fraudulent act?
Would it be helpful in this case to also draft a letter with a lawyer stating that she has never had equity interest in my property and her name on the title was for incidental purposes should anything happen to me while also doing this quit claim? You know, something to help show that this is MY home should her financial situation worsen later.
In worst case if she has to foreclose and/or file for bankruptcy so I lose my property completely to her creditors or only the portion of debt she owes? As it is my property right now has no equity but I can still keep up with the payments. So let's say her properties go and she still owes lenders 200k, my property is valued at 550k. Does the bank now have 200k of my home? Not quite sure what happens.
I am in California if the rules are different.
Thank you so much
I am in a similar situation as Angela. My parents co-signed for me when I purchased my house. My mom had an investment property that she is defaulting on. I am wondering the same thing, if the creditor will come after my house that I have been paying for on my own. My mom has already stopped paying for the house, so if there is anything I should be doing to make sure that I will not loose my house??? Please help!!!!!
Welcome,
To angela,
Yes, if she files a bankruptcy within 24 months of signing a quitclaim deed, then it will be considered as a fraudulent act. Though you were always on the title of the property, I don't think it will help in proving that the transfer was not fraudulent one.
You may draft a letter from an attorney stating the conditions of transfer but chances are less that the bankruptcy court will accept it. In case she files a bankruptcy, then your property may be liquidated and you will be given your share of the property. The rest will be used to pay off the creditors.
To NeedHelp,
As her name is on the property deed, then the lenders can come after your property if she files a bankruptcy. But again if she quitclaims the property to you now, she will not be able to file bankruptcy within 24 months as it will considered fraudulent transfer.
To angela,
Yes, if she files a bankruptcy within 24 months of signing a quitclaim deed, then it will be considered as a fraudulent act. Though you were always on the title of the property, I don't think it will help in proving that the transfer was not fraudulent one.
You may draft a letter from an attorney stating the conditions of transfer but chances are less that the bankruptcy court will accept it. In case she files a bankruptcy, then your property may be liquidated and you will be given your share of the property. The rest will be used to pay off the creditors.
To NeedHelp,
As her name is on the property deed, then the lenders can come after your property if she files a bankruptcy. But again if she quitclaims the property to you now, she will not be able to file bankruptcy within 24 months as it will considered fraudulent transfer.
My mom is not going to file bankruptcy, just defaulting on her loan on the investment property and I guess eventually it will got o foreclosure. In the case that they foreclosed on her investment property, is the lender entitled to come after my house??
I really need to know so I can do something quickly.
Thank you so much for the insight and replies.
I really need to know so I can do something quickly.
Thank you so much for the insight and replies.
Hi guest,
If the property is owned alone by your mother then the lender can't come after your property. If you have taken a joint mortgage along with your mother for the investment property, then there are chances that the lender may place lien on your property.
Thanks
If the property is owned alone by your mother then the lender can't come after your property. If you have taken a joint mortgage along with your mother for the investment property, then there are chances that the lender may place lien on your property.
Thanks
i need to get my x partner of my deeds and mortage how do i go about this
Hi helen,
Taking your ex-partner off the deed and mortgage won't be difficult for you. What you need is a quit claim deed through which your ex will transfer his share of interest in the property to you. Once it's done you can then refinance the mortgage in your name removing him from it.
Taking your ex-partner off the deed and mortgage won't be difficult for you. What you need is a quit claim deed through which your ex will transfer his share of interest in the property to you. Once it's done you can then refinance the mortgage in your name removing him from it.
I owned a home with another party who has recently filed for bankruptcy. The home is now going into forclosure and I will be held responsible for all association fees and taxes, which she had fallen behind on. Are there any abandonment laws that would allow me to go after her for half of those fees? Or does the bankruptcy protect her from that?
I bought a home with my ex (now) about 18 years ago. 4 years ago she kicked me out of the house which she eventually defaulted on the loan. About 2 years ago during the divorce proceedings the judge ordered me the refinance the loan and she to stay in the house for 2 years while looking to refinance on her name. The problem is that my ex doesn't have good credit to buy anything and I want to take my name off the house so I can get-on with my life. What can i do??? I need help biiggggg time!!!
Hi waheedonisemoh,
If you want to take your name off the title, you can sign a quitclaim deed whereby you will release your share of interest in the property to your ex. however, if there is mortgage on the property which is in your name, then you cannot transfer your financial obligations through such a deed. Your ex needs to refinance it in her name or you can also request the lender to take your name off the mortgage.
Thanks,
Jerry
If you want to take your name off the title, you can sign a quitclaim deed whereby you will release your share of interest in the property to your ex. however, if there is mortgage on the property which is in your name, then you cannot transfer your financial obligations through such a deed. Your ex needs to refinance it in her name or you can also request the lender to take your name off the mortgage.
Thanks,
Jerry
My ex doesn't want to take my name off!She says that she can't take the mortgage on her sole name, because her income isn't good enough to go for a mortgage on her own. My solicitor told me that the court might keep my name on that mortgage, because she leaves there with 2 kids. I have tried everything, even offered her a house for taking my name off it. I am married, I have a child and we can't move on. We leave in a rented flat and she leaves as a quenn in a 4 bed house... perfect right? I lost my hope... help me...
Hi DaveP!
Welcome to forums!
You can either buy her out by offering her a sum of money and asking her to remove you from the deed or go for a partition law suit. A partition law suit will help you in selling off the property with court's order. But you will have to immediately pay off the mortgage.
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
You can either buy her out by offering her a sum of money and asking her to remove you from the deed or go for a partition law suit. A partition law suit will help you in selling off the property with court's order. But you will have to immediately pay off the mortgage.
Feel free to ask if you have further queries.
Sussane
my step mother helped get a house in her name my name is on the insurance ,deeds and i pay the mortgages on the home ever month.but there is a promblem where not getting along can she still my hose help me .
Is the property deed in your name? If the property deed is in your name, then you can ask her to leave the property as she has no ownership to the property. But if she is the co-owner of the property, i.e., if her name is also mentioned in the property deed, then you cannot ask her to leave the property.