Name on House Title after Chaper 7?

[spikelavende]

My sister is purchasing a home and would like to put my name on the title of the home, along with hers. It will be an FHA loan, and I will not be on the loan. My Chapter 7 was discharged in September and I was told my FICO had to be around 640, which it currently is.

My question is, will the BK have any negative effect on this process, even if I have nothing to do with the loan?

Thanks in advance.

[LadyInTheRed]

My first thought is the trustee could use 11 U.S.C. 541(a)(5) to get at your interest in the property if your name is put on title within 6 months after discharge. But that lifetime gifts don't seem to be included in that code section. http://www.law.cornell.edu/uscode/us...1----000-.html But, I'd still ask an BK attorney to be sure.

Why does your sister want your name on title? Are you sure you want to incur liability for the property (property taxes, damages if somebody gets hurt on the property or a tree on the property falls on a neighboring property or car)? Does your sister realize that if you get into financial trouble again, your creditors could get a lien on the property? If the reason for putting your name on the title is to avoid probate when she dies, she should consider putting the house into a living trust instead and making you the beneficiary after her death.

[tcreegan]

Hi spike,

I don't think the FHA is going to allow you on the title if you are not on the loan, that is why your credit score is needed. They are pretty strict about the names matching on the title and loan. If you were just going on the title but not the loan, your credit score wouldn't matter.

Also need to check the terms of the mortgage, standard language is to have everyone on the title liable for the loan.

If I had to guess, I'd bet FHA is going to balk at your BK not being at least 2 yrs old....

...but who knows, stranger things have happened !

Tom in Colo