Posted: Sun Jan 11, 2009 3:01 pm Post subject: Chapter 7
My parents are in a terrible financial situation. My mother's business has bottomed out and she has run up huge debt. They are without much income and savings but do have 50% equity in their home. Question: Can I purchase their home from them for the current bank note before a possible bankruptcy then have them continue to stay in their home during and after said bankruptcy?
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Are you parents filing bankruptcy chapter 7? If it is so, then you can't purchase their home from them as it may be considered as a fradulent transfer. That is, the bankruptcy court may think that you've transferred property just because you wanted to prevent it from being liquidated in order to pay off the money you owe to the mortgage lender. On the whole, this won't be a favorable transaction. Find out if your parents are eligible for chapter 13 and whether they can afford the payemnts under chapter 13 plan. _________________ Procrastination is the enemy of your financial sucess
JackJ Guest
Posted: Mon Jan 12, 2009 3:14 am Post subject:
I think they have to file chapter 7.? Their social security in only 1400/mo, my father has cancer and my mother's business in debt to the tune of 100k. They live in a small town and their nice little house is worth approx. 50k with a note of 25k. My plan was to purchase their house, have them pay off the mortgage, and then have them rent from me for the payments. Would this be fraud? Also, is there a way to keep the pending bankruptcy out of the locoal newspaper?
If you purchase the home from your parents without informing the bank, it may be considered as fraud. And if you inform the bank, it may ask you to refinance the loan in your name. I think by doing so you can help your parents avoid getting a bad credit due to bankruptcy. Oh by the way, how old are your parents? they can even take a reverse mortgage on their home. And for that they don't need top have great credit or income. Also, they don't need to make monthly payments.
adonis
