Possibility of Refi during Adversary?

[temple]

TEXAS...

Put fiancee on mortgage refi of separately owned real prop in 2002..no monies exchanged as all rolled back into the mortgage. He was NEVER added to the title. He never pd towards property, nor did he ever reside in same. EX-FIANCEE files ch 7 10/16/05. Lists prop as an asset, both myelf and mortgage as creditors. He was discharged 9/12/2006. Case nvr closed. Trustee now coming after me with adversary to force my purchase of his interest, if any, in said prop for 15k. Judge does not seem to care abt evidence of Title in my name only, proof that all payments of mortgage and taxes have never been paid by debtor, nor handwritten letters and emails fm debtors declaring prop as mine, and never his, and Judge orders sale w/no time limit. Question: Mortgage Co has no record of ch 7 filing. I have offered to send same and they have refused. Mortgage and all taxes hve been kept current by me. Mortgage Co will happily refinance mortgage in my name alone, removing debtors. Can I do this and if legal, with debtors name now removed fm mortgage wouldn't that extinguish any interest he may have?

 

[temple]

anyone????

bumping in the hopes at least one person might respond....

 

[azatty]

If the judge has ruled in favor of the trustee and the time for appeal has expired, you're stuck with his ruling (which affirms the estate's interest in the property).

You can refinance, but that action will not extinguish the bankruptcy estate's interest in the property. What I would suggest to a client in your position would be to make a settlement offer to the trustee--maybe half of the amount of the estate's interest (in this case, $7,500)--and then refinance to pull that much out and pay off the trustee.

Your worst case is the trustee could file a partition action in state court, force the sale of the property, and then take the estate's share of the cash. If the trustee is serious about collecting money, that should be his next step. I'd suggest working a deal before he gets to that point.