Posted on: 24th Aug, 2009 01:54 pm
Our daughter signed as primary on the purchase of a home for her brother and sister-in-law. Her sister-in-law is listed as secondary. After a battle with cancer and mounting bills, our daughter was forced to file for backruptcy. When she started doing the paperwork, she found out that the house that her brother was living in was already in default and in the process of foreclosure. Her bankrupcy was approved. Now her brother states that he needs her to sign a quitclaim so that he can get the house refinanced. Does that sound correct?
Hi momo!
Welcome to forums!
As the mortgage on the property is already in default, the brother will not be able to refinance the loan. Lenders won't be ready to refinance a defaulted loan. Moreover, if your daughter signs a deed and transfer the property to her brother, the bankruptcy court can consider this as a fraudulent transfer.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As the mortgage on the property is already in default, the brother will not be able to refinance the loan. Lenders won't be ready to refinance a defaulted loan. Moreover, if your daughter signs a deed and transfer the property to her brother, the bankruptcy court can consider this as a fraudulent transfer.
Feel free to ask if you've further queries.
Sussane