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codythai · Joined: 24 Jun 2009 Posts: 5 3.15 Dollars($)

hi! our primary residence was purchased in 06', 1st loan is under my wife, Tiffany and her brother, Joe. Joe is a co-borrower. Our second mortgage is under Joe's name alone. Now Joe wants to file for bankruptcy in the next few months, he has another home in southern california with a small loan that he wants to keep. however we want to keep our home as well, in early of 08' Joe had grant deeded his interests in our property to me, Cody and of course my, Tiffany is still on title. please we need to understand what necessary steps to take to protect our investment from Joe's bankruptcy decision. thank you

jenkin7 · Posted: Wed Jun 24, 2009 11:15 pm Post subject:

Hi Cody,

If Joe had grant deeded the property to you and your wife, it means he no longer holds any interest in the property. In that case, he cannot list this property as his asset under the bankruptcy. Is it possible for you and your wife to refinance in both or either of your names? If you can refinance, it will take Joe's name off the loan completely.

If a refinance is not possible, Joe can keep this mortgage out of the bankruptcy and you can continue making the mortgage payments. If the payments are made on time, you can definitely keep your house. However, a consultation with a bankruptcy attorney in this regard, can be quite useful.

elnoralittle · Posted: Thu Jun 25, 2009 5:29 am Post subject:

I agree with the refinance option, removing Joe completely. The thing is, in order for Joe to have gotten a 2nd on the property, you and your wife would have still needed to be there to sign the deed b/c you are on title. Joe's interest in the property is not solely his own, therefore, he cannot be the only one that has a say in his decision. My gut says try to refinance, and also, talk to Joe about meeting with his bk lawyer. The lawyer has to have some advise as well. If you start making payments on the second trust that Joe has, my suggestion there is to make them directly to the bank and not to Joe.
there are several factors here that are in your favor, a third is, Joe's loan is in second lien position. I do not believe that they can take the property before the first lien holder.

codythai · Joined: 24 Jun 2009 Posts: 5 3.15 Dollars($)

thanks for your quick responses. yes Joe did grant deed his interests in the property to me, but I have yet get it to record. More likely Joe will file for Ch. 7. I agreed the court cannot force a sale on the property as Joe no longer has ownership in it. what will happen to the 2nd when Joe files? will it be wiped out?

smithsussane · Posted: Mon Jun 29, 2009 12:17 am Post subject:

Hi codythai!

Welcome to forums!

Have you refinanced the property in your name? If you have refinanced the property, then the second mortgage will not be discharged though Joe files for bankruptcy.

Sussane

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CO-BORROWER FILES FOR BANKRUPTCY....CAN WE KEEP OUR HOME?