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Bankruptcy and Quit claim deed

Posted on: 09th Nov, 2007 05:50 am
I'm on the deed of my home w/my mother but my name is not on the mortgage. My mother pays nothing---no monthly mortgage payments, no utilities. I'm no longer able to keep supporting all the monthly bills while raising 3 children from a prior marriage. I've been consulted w/a bankruptcy attorney and it was determined that I should file Chapter 13. The house was up for sale at a high price---my mother did not want to reduce it and now the contract is expired and will not relist until I sign a quitclaim deed to my uncle and then pay rent while I live here. I feel as I'm being forced into a situation. If I sign it, I am still responsible for a joint home-equity loan on the house AND I lose my home to my mother and uncle. If I don't sign it, according to the attorney, I will pay December's mortgage ($2700/monthly mortgage) and the house must be put up for sale. My mother refuses to list the house for sale if I don't sign this document. If I file Chapter 7, she will not have a choice. Suggestions????
Hello Donna,

If you are not on the mortgage you are not legally liable to pay the monthly mortgage.

Is your mother the only person on the mortgage and you are paying on her behalf?

If you sign a quit claim to your uncle, you will lose your ownership to the house completely.

Are you the co-borrower of the joint home-equity loan? In that case you are responsible for the monthly payments.

If you file bankruptcy Ch 13, your home and other assets are protected but you will opt for paying off the debts within a time period of 3 - 5 years. While with Ch 7, your home may be at a risk. It also affects your credit the most.
Posted on: 09th Nov, 2007 08:29 pm
my mother is the only person on the mortgage and i've been paying on her behalf. i am the co-borrower on the joint-home equity loan and have been making payments on time. my uncle---the one who is pressuring me to sign a quit claim---is a house flipper and has several properties he uses as rental incomes. i've got a gut feeling that he talked my mother into going into a joint venture with him since she would maintain her interest in the house. she has another home she owns outright and could move there at a moment's notice. i thought that property could not be deeded within 2 years of filing bankruptcy?
Posted on: 10th Nov, 2007 06:07 am
Hello Donna,

If you are the co-borrower of the home equity loan, your lender will require you to be on the title of the property and may not give his consent to take off your name from the deed.

If the quit claim is still signed without the lender's consent, you may later on fall into trouble.
Posted on: 13th Nov, 2007 05:03 am
i would like to do a quit claim deed so i have no responsibility for the house. i owe the irs and in my chapter 13 i must pay 336 dollars a month for 5 years to them. and pay the mortgage and all the expenses. i am willing to give the home to my ex partner. can i do this without any red flags or any expense cost for me. i am just trying a way to find some money for my monthly bills. i am a teacher and it is very tight. this woul help immensley. we have a home improvement loan also. can i relinquish this to her too? we owe 130k on our home (200k home)
thank you.
beth
Posted on: 17th Jan, 2009 07:42 pm
Hi Beth!

Welcome to forums!

Is the property included in your chapter 13? If it is included, then I do not think your lender will allow you to transfer the property in your ex-partner's name.

Sussane
Posted on: 18th Jan, 2009 09:18 pm
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