Adding someone to deed

[spitndust]

We live in Florida and have recently filed bankruptcy and cannot afford to keep our home because our payments are very high due to a high interest rate. My mother in law has agreed to finance the house in her name becuase she would get a much lower rate, in turn our payments would be low enough that we could afford it. But, she is not currently on the warranty deed or anything with the house. Do we have to add her to the deed or title? Can we do this? Please help!

 

[JETX]

There are a couple of ways that this can be done, each having their own problems with her 'security' of the funds and your bankruptcy.

1) She could simply loan you the funds to pay the property in full. You would have to show the property as an asset, and her debt as a liability. She may not feel comfortable doing this since there is no 'security' that you would repay her. This would also affect your 'asset value' in the bankruptcy.

2) She could simply buy the house from you. You could then sign a long-term lease with her and become a renter. Due to the bankruptcy, the purchase would have to be done at full 'market value' in a complete 'arms length' transaction. Any 'profits' from the sale could also affect your bankruptcy filing.

Depending on the concerns of all parties, there may be other possible solutions.

 

[spitndust]

Adding Someone to deed question

Could we just add her to the deed and title and then refinance our house in her name? I don't know if that's possible. Thanks.

 

[HomeGuru]

Re: Adding Someone to deed question

Could we just add her to the deed and title and then refinance our house in her name? I don't know if that's possible. Thanks.

**A: not unless you get approval from the BK Trustee, which is doubtful.

 

[JETX]

"Could we just add her to the deed and title and then refinance our house in her name? I don't know if that's possible. Thanks."
*** That also wouldn't work since any lender would likely require the credit approval and signatures of ALL owners of the property, thereby introducing your credit history back in the refinance evaluation.

 

[HomeGuru]

Good point JETX, when the lender find out that the property/borrowers are in BK, red flags will appear.