Deed of Trust to Secure Assumption & Bankruptcy

[har99001]

What is the name of your state (only U.S. law)? Texas

Last March of 2011 my divorce was finalized. In the divorce decree, I was awarded the house and I was suppose to sign a deed of trust to secure assumption, but my attorney never mentioned it. Ultimately, I am responsible for not being aware of it, but that's beside the point. With all that, I declared bankruptcy bank in September 2011 and the house debt was discharged under chapter 7. I lived in the house for nearly two years without making a payment and decided to move out before it was foreclosed on. My ex decided that she could move in and take ownership of the house via refinancing...her name was on the loan as well. Not sure how her and chase are working that out, but do I still sign the deed of trust to secure assumption even though I declared bankruptcy? What will this do now that I have already declared bankruptcy?

 

[HomeGuru]

What is the name of your state (only U.S. law)? Texas

Last March of 2011 my divorce was finalized. In the divorce decree, I was awarded the house and I was suppose to sign a deed of trust to secure assumption, but my attorney never mentioned it. Ultimately, I am responsible for not being aware of it, but that's beside the point. With all that, I declared bankruptcy bank in September 2011 and the house debt was discharged under chapter 7. I lived in the house for nearly two years without making a payment and decided to move out before it was foreclosed on. My ex decided that she could move in and take ownership of the house via refinancing...her name was on the loan as well. Not sure how her and chase are working that out, but do I still sign the deed of trust to secure assumption even though I declared bankruptcy? What will this do now that I have already declared bankruptcy?

**A: yes if you are still currently on the deed.

 

[har99001]

Perhaps I should clarify. Apparently, its a special warranty deed...is that the same thing as a secure assumption? Here's what it says

The division of property in Cause No. xxxxxxx, styled "In the Matter of the
Marriage of xxxxxx and xxxxxxx and In the Interest of xxxxxxxx, Minor Children," entered in the xxxx Judicial District
Court of xxxxx County, Texas, and ten dollars and other valuable consideration paid by Grantee,
and Grantee's assumption of the unpaid principal and earned interest on the note in the original
principal sum of Ten dollars ($10.00) dated February 28, 2007, executed by xxxxxxxxx
and xxxxxxxx, and payable to the order of payable to MERS, and a lien payable to
MERS in the amount of $32,598.00, and any secondary or tertiary sum or lien owed to Bank of
America or otherwise recorded in the official public records of real property of xxxxxx County,
Texas. Grantee agrees to indemnify and hold Grantor harmless from payment of the note and
from performance of Grantor's obligations specified in the instruments securing payment of the
note. Grantor assigns to Grantee the casualty insurance policy on the property, all utility deposits
for utility service at the property, and all funds held in escrow for payment of taxes and insurance
premiums.

If I sign this wouldn't this make me liable for that debt now...now being that I have already declared bankruptcy? The intent of bankruptcy was to discharge this debt because I have no interest in the home.

 

[HomeGuru]

Perhaps I should clarify. Apparently, its a special warranty deed...is that the same thing as a secure assumption? Here's what it says

The division of property in Cause No. xxxxxxx, styled "In the Matter of the
Marriage of xxxxxx and xxxxxxx and In the Interest of xxxxxxxx, Minor Children," entered in the xxxx Judicial District
Court of xxxxx County, Texas, and ten dollars and other valuable consideration paid by Grantee,
and Grantee's assumption of the unpaid principal and earned interest on the note in the original
principal sum of Ten dollars ($10.00) dated February 28, 2007, executed by xxxxxxxxx
and xxxxxxxx, and payable to the order of payable to MERS, and a lien payable to
MERS in the amount of $32,598.00, and any secondary or tertiary sum or lien owed to Bank of
America or otherwise recorded in the official public records of real property of xxxxxx County,
Texas. Grantee agrees to indemnify and hold Grantor harmless from payment of the note and
from performance of Grantor's obligations specified in the instruments securing payment of the
note. Grantor assigns to Grantee the casualty insurance policy on the property, all utility deposits
for utility service at the property, and all funds held in escrow for payment of taxes and insurance
premiums.

If I sign this wouldn't this make me liable for that debt now...now being that I have already declared bankruptcy? The intent of bankruptcy was to discharge this debt because I have no interest in the home.

**A: you are confused. A deed is totally separate from a mortgage.