Compare Mortgage Quotes

Guest

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?

Thank you in advance.

adonis · Posted: Mon Jan 12, 2009 12:18 am Post subject:

Welcome JackJ,

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.

Guest

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?

Thank you for your help.

Caron · Posted: Mon Jan 12, 2009 4:58 am Post subject:

Welcome back Jack.

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.

good luck

Guest

What realistic options do I have on purchasing a home after declaring ch 7??

Is it a two year wait and then go FHA in lieu of a conventional loan??

Please shed some light!!!!!!!!!!!

smithsussane · Posted: Mon Nov 15, 2010 10:52 pm Post subject:

Hi jimmy!

Welcome to forums!

You will be able to buy a property even though you file Chapter 7. You will have to wait for 2 years after your discharge in order to get a FHA loan. If you want to get a conventional loan, then you'll have to wait for 4 years after the discharge.

Feel free to ask if you've further queries.

Sussane

Company	Loan Type	APR	Est. Pmt.
				Go
				Go
				Go
				Go
				Go
				Go

Property State:
Property Type:
Credit Rating:

All times are GMT - 7 Hours

Page 1 of 1