Possible fraudulent conveyance even after 8 years?

[lp0327]

My grandparents transfered the deed to their house (current value $400k) to all of their 4 children in 2003. However, this was done without the consent of the bank. The bank refused to transfer the mortgage to the children and so the mortgage is under my grandparents name (grandfather passed away after the transfer). The current mortgage is about 114k, under both grandparents names.

My grandmother continues to live in the house and her children are the ones that continue to pay the mortgage. She is looking to file a chapter 7 as she is retired and looking to get rid of other debt as the mortgage will continue to be paid.

In the state of new york the look back period is 6 years, but I understand that there is also a 10 year look back provision, the transfer was done 8 years ago. At this point just trying to figure out if the home is somehow in jeopordy because there is about 300k in equity but my grandmother is not on the deed but is on the mortgage.

Thanks so much in advance!

[newbie2]

This is so complex that you're going to need a good attorney to look at it. (Or rather, your grandmother needs a good attorney). My 2 cents as a lay person? The note (the promise to pay) can be discharged in bankruptcy but the mortgage (the document that puts the lien on the house) will still exist. That sounds like it's ok with you, as there is full intention on paying on the note going forward. However, I believe that $300,000 in equity is going to be quite juicy for any bankruptcy trustee, even with the 8 year old transfer of ownership via a deed. (Especially considering the deed was transferred without the note being paid off)

Get your grandmother to several attorneys for free consultations.