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I need help saving my Home!!!!

Date: Thu, 09/10/2009 - 21:30
Submitted by on Thu, 09/10/2009 - 21:30
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Me and my friend bought a home together as joint-owners. We refinanced that home together, and we got $200,000 out of it. I kept $55,000 of it to put as a down payment for another home, i let him borrow the rest of my $100,000 that belonged to me, so that he could put a another down payment for another home. He promised to pay me back within 4 months, of witch i didnt get a dime of. He basically was left with the two houses and i moved to the home in which i put the down payment on. For us to get the three homes we signed as joint-owners for all three houses. He stopped paying for one of the homes and he is now filling for bankruptcy. What i dont know, is what happens to me? What happens to my credit, do i loose my home too? since he only gets one home, even though i solely make payments from my account to this home. Can i become sole owner of the home by taking him off the contract? And is there anything i can do to get the money back that i let him Borrow? I need help i dont know what to do or what my rights are. Anything helps Thank you.


Okay, couple of things, if you now ask your friend to file a 'quit claim deed' in order to transfer the property in your name, it would bar him from filing bk for another year. It's considered as fraudulent to transfer any asset just before bankruptcy.

Next, the type of bankruptcy would also matter in this regard. If your friend files for ch-7, he would need to include all assets hold by him, which means listingof all the three houses owned by both of you. The property (over and above the limit of exemption) might get liquidated to compensate the creditors; however, you'd receive your share without problem.

Now, if he considers ch-13, he may choose not to include the properties owned by you, which may help you in saving your home.

Quote:

What happens to my credit, do i loose my home too?


Your CR would reflect bankruptcy as "included in bankruptcy of another" but it might not affect your score.

IMO you need to be careful in choosing a friend next time.


Submitted by SC on Thu, 09/10/2009 - 23:39

SC

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