Firs time writting here. What little sanity I have left is due to the knowledge I have acquired reading this forum. God bless you all for sharing. I live is California, hopefully will be filling chapter 7 in a couple of months. However I have a question, and have had 2 polar opposite answers from 2 different attorneys. My husband & I decided to buy a home in 2001 but at the time the house we owned was upside down and it made no sense to sell it at a loss since we had a friend who wanted to rent it. Due to that fact the bank did not approve our mortgage application since it was too high a debt to income ratio situation. We asked my mother to apply for the mortgage on our behalf and she got approved with no problems. We have lived in this house for 8 yrs., have never been on the title (my mother is the only legal owner), but have always claimed the tax exemption for the mortgage interest and for a second mortgage that again my mom took on our behalf about 5yrs ago (coincidentaly we used that money to pay cc debt). Now we are confronted with the prospect of filling ch7 and have no idea on how to procceed. One atty said this house is a "rental" the other atty said it is ours if we explain this mess to the trustee. If we put rental on the schedules, how can we justify having taken the tax exemptions all this years? On the same token we are not on the title. If we don't add the money we pay to the
2nd mortgage we may have too much disposable income & be forced to file ch 13, which we can't afford...Anybody, please need your help.
2nd mortgage we may have too much disposable income & be forced to file ch 13, which we can't afford...Anybody, please need your help.
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