Posted on: 15th Mar, 2009 10:34 pm
I co-own a shore home with my in-laws. My wife & I and my father and mother in-law are on the deed. My mother in-law & I are the only ones on the mortgage. My in-laws are having a tough time and can't afford to pay their bills and owe a bunch of money through their 1st and 2nd mortgages on their primary home as well as a business line of credit. They think it would be a good idea to file a quitclaim deed so as the creditors won;t come after the home. I'm skeptical about the whole thing. Advise please!
Hi Chickenehad,
I don't think a quitclaim deed can now save the property from the creditors. Any transfer at this time could be considered as fraudulent conveyance and the creditors will have the right to reverse the deed and sue the grantor. Thus, I think they should try and negotiate with the lender on a work on plan and modify the loans in such a way that they can afford to make the payments.
I don't think a quitclaim deed can now save the property from the creditors. Any transfer at this time could be considered as fraudulent conveyance and the creditors will have the right to reverse the deed and sue the grantor. Thus, I think they should try and negotiate with the lender on a work on plan and modify the loans in such a way that they can afford to make the payments.