Need your opinions about a purchasing a house...

[loveends1981]

Well to get things started.. here's our case....

we just signed papers yesterday for our BK to be submited on monday.

We were told by our attourney that we can keep our home.

Our problem or situation we have now...

My husband's grandma wants us to have a bigger home. We know that we cant purchase a home while going through BK with OUR name on the papers.
My Husband's grandma wants to purchase us a home for us. But wants OUR name on the papers. She will be paying for the home with cash. Well we found a home, she liked it, we liked it. We saw the home tuesday, and yesterday, (friday) we signed papers to get our BK started. We get home from signing the papers and our grandma thought by just signing the papers that the BK was done and over with.... LOL (I WISH!) So we had to sit her down and tell her this is just the beginning and it can take 90 days. Well, she was going to put an offer on the house we saw on tuesday, and since she has now heard that this is the beginning, and not the end, by signing papers, she doesnt want to put an offer on the house now. She wants OUR name on the papers for the house. She said to wait til after the BK is over. She talked with her attourney and her attourney told her that after the BK is over, she can purchase us a home with her and OUR name on it.

Is that something that can work? Even if we have bad credit from filing BK?

[SCorpPain]

This is strictly an opinion, I am not an attorney and you are farther along in the bk process than I am. But, it seems to me that it would not be an issue if she kept it in just her own name at least until the bk is over. I'm not sure what her logic is, perhaps something very sound. One thought that came to mind is that she simply wants to make sure it will be yours even if something happens to her. I believe that could be taken care of via her will without any problems.

[HHM]

I agree, if she is paying cash, she can buy the house and once the BK is over, she can simply sign over the deed.

[justbroke]

Absolutely have her wait!!! You do not want to cause any issues.

As a matter of fact, maybe ask your attorney about this. You may need to wait 180 days so that the "inheritance" or "windfall" clause doesn't kick in!!! (11 USC 541(a)(5))

Best thing for her, as HHM mentions, is to buy it in her name... then later QC (Quit Claim) and sign the deed over to you. Just need to pay the recording fee and QC fee. However, I'd consult my attorney and I personally would probably wait the 180 days from the time you filed.

[loveends1981]

What she told us back in October 2008 before we even considered filing BK was that she was going to put a house in her name, so we can get out of the smaller house we are now in, and while we get all of our furniture out, and into the new house, it will give us an opportunity to do some fix ups on our old house. But then things changed and we had to file for BK since the darn credit card people raised our payments and wouldnt budge!

We then talked about a month ago and she said she would still purchase us a house and put it in her name, and we would pay her the monthly payments, like renting the house from her. But then just a day ago she said she wanted us to wait til after the BK was over and want our names on the papers instead of hers. It just got so confusing. Were at the point now where were thinking twice on accepting her offer of her purchasing a house for us.