Home arrow Mortgage Forums arrow Deeds, Property Transfer and Estate Planning arrow

foreclosure / quit claim

Author Message
guest

Guest







Post Posted: Fri Oct 24, 2008 1:31 am    Post subject: foreclosure / quit claim
Like 0
Dislike 0

Hi, I'm hoping someone can help answer a question. I live in the state of Washington with my wife. Our home, which I qualified for under my own name, is now in jeopardy of foreclosure. Additionally, my wife signed a quit claim when we first acquired the mortgage. Can someone tell me if the act of my wife declaring bankruptcy will temporarly prevent the sale of the property? If so, do I need to somehow nullify the quit claim that she signed? How would I go about doing that? Thanks much in advance.
_________________
Need help choosing the right loan? Get free consultation from community lenders/consultant
Icon Mini Profile jerry
jerry
Moderator



Joined: 17 Oct 2005



Posts: 2615
Location: MICHIGAN
415.19 Dollars($)
Post Posted: Fri Oct 24, 2008 3:15 am    Post subject:
Like 0
Dislike 0

Hi guest!

As the property and the mortgage is in your name, your wife cannot declare bankruptcy. Moreover if you quitclaim the property in her favor now, the transfer will be considered as a fraud and you can be penalized for it. I would suggest you to go for either a deed-in-lieu foreclosure or a short sale.

Thanks,
Jerry
Icon Mini Profile cliff3
cliff3
Community Expert
Community Expert



Joined: 05 May 2008

Posts: 328
Location: Houston
75.44 Dollars($)
Post Posted: Fri Oct 24, 2008 5:22 am    Post subject:
Like 0
Dislike 0

Hello guest.

I am concerned because you did not mention if you have spoken to the lender to see what workout options that you may qualify for to stop the foreclosure. A bankruptcy or foreclosure on your credit is very damaging and can create difficulties in getting approved for other things in the future.

You need to talk to someone in the Loss Mitigation department of your lender. This rep will have options to discuss with you, of which include a repayment plan, forbearance, loan modification, short sale, etc.

Please let us know if you still have questions and need more help.

Good luck. Very Happy

_________________
Cliff Pape
Market Analyst
www.home-buddies.com
guest

Guest







Post Posted: Fri Oct 24, 2008 8:13 am    Post subject:
Like 0
Dislike 0

Hi and thank you with your very helpful replies.

@Gerry - I was afraid of this but it makes sense.

@Cliff - We have spoken with the lender and have just finally got in touch with their Loss Mitigation Department (after a SIGNIFICANT amount of runarounds with their collection department). Our lender is Countrywide Mortgage and are a "victim" of their recently exposed predatory lending practices. After speaking with our Attorney General and HUD, they were able to put us into contact with the correct people at CW.

While it does sound like Countrywide is willing to work with us on a Loan Modification, it doesn't sound like they will be able to do it in time to avoid the property being auctioned. This is why we're trying to buy some additional time.

It's sounding more like I'm the one who will need to declare a Chapter 7. This is something that I have been trying to avoid at all costs. While I've had very good credit up until recently, my career is such that this type of filing may have very negative consequences.

Is there anything else you can suggest that might help us keep the house? We are in a position to possibly come up with emergency funding to help rewrite the terms of the loan but time is of the essence - we only have about 30 days remaining until the preverbal doo doo hit s the fan.

Thanks again in advance for your help.
Icon Mini Profile jameshogg
jameshogg




Joined: 20 Dec 2005

Posts: 10148
Location: Nevada
941.94 Dollars($)
Post Posted: Sat Oct 25, 2008 12:23 am    Post subject:
Like 0
Dislike 0

Hi guest!

You have mentioned that you spoke to the loss mitigation department of Country Wide but they have not responded. You can speak to them once again and check if they will be able to offer an alternative plan or not and ask them to specify the time within which they will help you with the plan.

In case, the alternative payment plan does not work, you may rent away the house and pay the mortgages with that rent. If this option is not possible, you can go for Chapter 13 bankruptcy rather than chapter 7. This will have a low effect on your credit score and you will also be able to save your property.

Thanks.
Quick Reply
Your Name
Subject
Image Verification


Can't read the image? click here to refresh
Message body

All times are GMT - 7 Hours
Page 1 of 1

 
Refinance Quotes
Call for Rates
888-485-7561
Speak to a lender now.

We will match calls to our toll free number with our network of lenders.

Ask Questions
Community Attorney
Joshua Heard - Attorney Joshua Heard
Houston, Texas






Highlights
Helpful References
Mortgage Guide
Mortgage Terms
Mortgage News
Book Center
Shop and Compare lenders
30 Yr. Fixed Vs. 5/1 ARM


Our Community
MortgageFit Blog
Community Professionals
Community Rewards
Introduce yourself
Website tools


Community Rewards
Five simple ways to earn money with the Mortgage Community.

New and upcoming tools
Credit Repair Tool New
Mortgage Planner
Simple Budgeting Tool






Community Chat

We have chosen to apply the Creative Commons Attribution License to all works we publish. This work is licensed under cc by 2.0
Page loaded in 21.079 seconds.