Posted on: 07th Sep, 2009 04:18 pm
Our home is in the forclosure process. We are not married but home is in both names. The 2nd mortgage filed a personal judgment against fiance but wrote me off of the debt ($99K). Here is the question: can he quit claim the house to me and I start paying the first mortgage to stay in our home? Can the 2nd mortgage company come back after me after writing my debt off? They cannot produce the original note. With the quit claim, the house would be solely in my name thought the 1st mortgage would remain in both of our names. He plans to file bankruptcy on the judgment as well as the rest of his debts. The only mark against my credit is this house. I would appreciate soem guidance on this - time is short.
Hi Melissa,
Your fiance will not be able to quitclaim the property to you. Such a transfer will be deemed as a means to avoid paying off the creditors. They will have the right to reverse the deed and make the transfer void. Thus he cannot stop the foreclosure procedure just by quitclaiming the property to you.
Your second loan company may have written off the debts, but it does not necessarily mean they have forgiven the debt. It could be possible that they may have charged off your debt to a collection agency, which will now be collecting the debt from you. If the second loan holder has indeed forgiven the debt and will not come after you in future, you should get some sort of written document like a release of lien etc. from them as a proof.
Your fiance will not be able to quitclaim the property to you. Such a transfer will be deemed as a means to avoid paying off the creditors. They will have the right to reverse the deed and make the transfer void. Thus he cannot stop the foreclosure procedure just by quitclaiming the property to you.
Your second loan company may have written off the debts, but it does not necessarily mean they have forgiven the debt. It could be possible that they may have charged off your debt to a collection agency, which will now be collecting the debt from you. If the second loan holder has indeed forgiven the debt and will not come after you in future, you should get some sort of written document like a release of lien etc. from them as a proof.