HELP! 3rd owner on a mortgage but sold my interest 2 years ago (signed over title)

[caligirl3]

In 2005 I purchased a condo with my sister and her husband. In 2009, I decided I was no longer interested in the property and sold them my share. They paid me and I signed over the title to them. They were supposed to amend the mortgage to remove my name, but then the real estate crash happened and now they're upside down. To remove my name, they essentially had to begin a new loan. So they just left it as is.

1. My name is 3rd on the mortgage, and CitiMortgage's system only allows for 2 co-owners. Effectively, they don't even report the loan on my credit report. It doesn't show up at all. But my name is on the mortgage. Do I have to include this on the BK? Even if I don't have title any more?

2. If yes, how will this affect my sister/bro in law's mortgage?

[despritfreya]

You must list all debts you have. You signed the note for the mortgage loan along with your sister and your BIL. You are just as responsible for the loan as they are regardless of who is on title to the property and regardless of whether or not is shows up on your CR. Your obligation under the loan will be discharged and that will effectively take you “off the loan” leaving the other two responsible.

Further, if you sold them your 1/3 interest within two years before filing (you said in 2009 so, depending upon when in 2009, you may be within the 2 years), you must disclose the transfer on question 10 of the Statement of Financial Affairs. Not a problem but you need to make sure it is disclosed.

As it relates to the actual mortgage, Citi is not going to care about your bk so long as payments are current. I do not know how it will report the loan or if it will put an internal freeze on things like "on-line" payments but I do know it will not attempt to take back the property if payments remain current.

Hope this helps.

Des.