Selling equity in a home pre-BK - HELP!

[btbeme]

Here is a tough one - I'd appreciate any and all experiences and fortified recommendations...

I own a second home and am on title with three siblings. The mortgage on the house is in my name. Our mother lives in that home.

Currently, the home is worth about $575k and has a mortgage of $425k, which means that there is about $150k in equity in the house. According to my attorney, the Trustee would most certainly come after my share of that equity (approx. 1/4 of $150k, or about $37,500). His recommendation is that I sell my equity share in the home for that value and use the proceeds to purchase exempt items prior to filing Ch.7.

So, how exactly does that work? Obviously I cannot relinquish my OWNERSHIP share or otherwise mess with the title for fear of the mortgage company calling the note due. How do I sell my EQUITY share in the house, and to whom, and in exchange for what?

My attorney says he cannot help with those questions - not his area of expertise, and the home is in another state where he is not licensed.

So...anyone else ever done this? Recommendations?

[SMinGA]

Is there a possibility of your siblings getting a mortgage on it without you? I would think that to be the best scenario, and they could 'buy' your portion. As long as you 'sell' it for the fair market value, that aspect will be fine.

[btbeme]

No possibility of a different mortgage, unfortunately.

[btbeme]

What if I were able to obtain a home equity loan from a private individual and then spent it down on exempt items before filing? I understand that would have to list that person as a creditor...

[Llelxon]

I would think you would want to find one of the best lawyers that you can no matter what the cost, as with the amount of equity in that house is sure to cause the trustee to want it.