receiving gifted property that was at one time foreclosed on

[serenitygr]

I filed bankruptcy 4 years ago. I had credit card debt, a family loan, and a home I foreclosed on prior to the bankruptcy. My question is this- my home was actually owned by my parents, who lent me the money to build it, we set up a legal sale contract, and then things in my life changed and I could not continue to make payments to them. Thus they foreclosed on it( this was agreed on by us both), and then they tried to sell it for over 2 years. During that time I also filed bankruptcy to discharge my other debts. One of them was to a different family member who became very bitter to me, and still is. In the meantime my parents allowed me to continue to live in the house as long as I could pay the utility costs- just to keep the place up and looking good. Right about then the housing market crashed and they could not sell it. Now it's 4 years later, and one of my parents has died, and the other one wants to just get this property out of their name, . I am financially able to afford to live here, and they want to just gift it to me. My concern is the bitter family member will turn around and try sueing me if I am gifted a house that was foreclosed on during the bankruptcy, and say we committed fraud because they could've just given me the house back then and I would not have had to file bankruptcy at all. Can anyone answer this about any possibilities? I can't afford huge legal fees to get this answered, or another legal fight in court.

[NoMoreCards]

I do not see how you could be sued because you were given a gift. Regardless "what" that gift is, and that is really what this boils down to. Your parents had every right to foreclose on you. They also have every right to give you a house, car or whatever they want.

It might however be a good idea to keep other family members out of your financial affairs. It really is no business of theirs and clearly there are issues when "word gets out". Maybe discuss this with your mother as well.

It might be a good idea however to ask a attorney. Perhaps call up the one who handled your BK case, and ask. I can't see a huge fee for a few minutes of his/her time.

[justbroke]

Can anyone answer this about any possibilities? I can't afford huge legal fees to get this answered, or another legal fight in court.

What I say won't prevent another legal fight. No one can clearly foresee what outcome this may have.

I don't see any problems with gifting it. The foreclosure was done quite above the board and legally. You couldn't pay your debts and the home was foreclosed upon. You then filed bankruptcy to discharge your other debts. That is all above board and legal.

That your parents want to give you a gift now, has no bearing on the bankruptcy. Even if the disgruntled relative re-opens your bankruptcy case, what can they do? You never had ownership at the time. I don't think they have any "argument" relative to them gifting the home to you back then. back then, the home had value but the market plummeted.

Disgruntled relatives are the worse. They are unpredictable and as such, I can't tell you what they would do. I'm confident that they don't have any cause to sue you, but that won't stop a vindictive person.

[keepmine]

I agree with the others. You and your parents did everything right.

Just an observation but, why tell this person you were gifted the home? Let them still assume you're living there under the same arrangement.

[serenitygr]

I should probably add- I think this person would find out just through researching public documents, and I think it's public knowledge who owns property. Just knowing them, I can easily see them keeping track of it, just waiting for something they can try to stir up trouble with. We definately wouldn't say anything to anyone, but I think they'd find out just thru our county land records...