Property is in my name, mortage is in grandfather's-NEED HELP PLEASE!!!!!

[leelee5252]

I am sorry if I posted this in the wrong place. I am new on here so here it goes.

My situation is that my house is in my grandpa's name and mine, on the deed. Also my g-ma and my husband's name. My grandpa put the mortage in his name and when we got the house they were to put our name on the mortage as well. Unfortuantly my g-pa isn't in good health. So my uncle decided that we have to get out ofour house or get off the deed and just up and move. We make my grandpa payments every month since the mortage is in his name only. However, over the last 2 weeks, my uncle has talked my gpa into filling bankruptcy on our house, even though there is 30K in equity in it. The payments have never been late. We thought about an assumption o the loan, but I do not think we will qualify since our credit is not so good. What are our options? This is breaking my heart that my family who has always been there for us and us them, have turned out this way. Any advice is appreciated...

[AngelinaCat]

Leelee5252: Welcome to the forum, but several questions first:

1. Exactly whose names are on the deed? Your post above is not clear on that.
2. Whose name is on the mortgage note?
3. Does your grandfather have a 'Durable Family Power of Attorney'? If so, who is designated to handle g-father's affairs?
4. By what authority is your Uncle using to justify what he is saying to you or telling your g-father to do or not do?
5. Is your g-father in good health mentally? Or is he in some stage of dementia?

I hope that all of the above questions/scenarios are not the case, but I have to say, it sounds like you have a snake as a family member. I've been there and done that. Please give a bit more info.

My very best wishes go with you!

[despritfreya]

Cat has asked some very good questions. It sounds like your grandfather owned the house initially either in his name or jointly with your grandmother. He then quit claimed an interest in the property to both you and your spouse. How does the title currently read and how long ago were you and your spouse added to the title? Adding you to the title would not have included adding you to the loan. In fact, I tend to doubt that you could have been added as borrowers to an existing loan.

If your grandfather files bk the home becomes property of his bk estate. The transfer of an interest in the property from your grandfather to you will be an issue. You being added to the title may be a problem if there was no consideration paid to grandfather. The length of time you have been on the title and making payments on the loan may have some impact on what is to come. We need more concise details and, if he does file, you do need to consult with a bk attorney to see if your can protect your interest in the property.

Des.

[leelee5252]

thanks so much for the fast response
heres more clarification, sorry for that...


1. Exactly whose names are on the deed? Your post above is not clear on that. my name and grandfathers are on the deed.
2. Whose name is on the mortgage note? my grandfathers
3. Does your grandfather have a 'Durable Family Power of Attorney'? If so, who is designated to handle g-father's affairs? yes, my uncle
4. By what authority is your Uncle using to justify what he is saying to you or telling your g-father to do or not do? see above, my uncle has POA
5. Is your g-father in good health mentally? Or is he in some stage of dementia? not in good health, can still get around on his own, but in early stages of alheizmers...

Hope this helps clear some things up...I really really appreciate you all!

[leelee5252]

No, we were looking for a house, then couldn't get it bc our credit was not great, so the realator came up with the idea that gpa could get the mortage in his name, and we essentially paid him the monthly payments...So we put the house in his and my name...
We have been on the title since the day we bought the house in May 2004...We are not on the loan whatsoever.
However I am on the title...
At this point, no one will talk to me about anything.

I have thought about trying to get a equity loan to pay off all our debt, then an assumption may go through easier...Or refinance...My grandma is the only one that talks to me and they are worried that my uncle and my mom there only 2 children, will be stuck to pay the house note if something should happen to my grandpa before it is out of his name...My uncle is the one that is pushing it because other than our property, my grandpa owes no one anything, had a great job at Ford Motor Co. and my grandma retired from GE...

One question is would the bank court come after her for anything? i am guessing the lawyers can work around it...

Thanks!
That is all the info I have for you....

Thanks so much for your input.

[leelee5252]

I must let everyone know, my grandfather has another home that is paid for but has since transfered into my uncles name. Also he has a boat and a truck that are bot paid for. He is only filling the bankruptcy to get his name off my house. He otherwise has everything paid for. If he does file, I will lose the house and all the equity in it, I am assuming...

[despritfreya]

No, we were looking for a house, then couldn't get it bc our credit was not great, so the realator came up with the idea that gpa could get the mortage in his name, and we essentially paid him the monthly payments...So we put the house in his and my name... We have been on the title since the day we bought the house in May 2004...We are not on the loan whatsoever. However I am on the title...

This makes your situation a whole lot easier to deal with in the context of a bk filed by your grandfather and I will explain why, but one MUST ask the following questions:

1. If there was a down payment at the time of the purchase, where did the $$ come from?
2. Since the time of purchase has your grandfather contributed to either the mortgage payments OR the upkeep of the property?
3. The payments you make each month to grandfather, are they in the exact amount of the mortgage and can you prove that you sent him each and every payment? (It would have been better had you been making payments directly to the lender but we have to deal with what has happened without thinking 20/20 hindsight.)

Now, depending upon your answers to the above, YOU may be the a ½ LEGAL owner of the property BUT you may also be the 100% EQUITABLE owner of the property. If your grandfather has no equitable interest in the property he simply has what is called “bare legal title”. If this is an accurate assessment, then, should he file bk you have a defense to any Trustee attempting to take the property regardless of the equity in it, since that equity (assuming grandfather has not contributed to it) belongs to YOU.

11 USC 541(d) states:

“Property in which the debtor holds, as of the commencement of the case, only legal title and not an equitable interest, such as (but not limited to) a mortgage secured by real property. . . becomes property of the estate to the extent of the debtor’s legal title to such property, BUT NOT to the extent of any equitable interest in such property that the debtor does not hold”.

For 541(d) to protect you should the bk trustee attempt to sell the property, you will have to prove that YOU are the true owner and that grandfather has no “equitable” interest.

As to the mortgage, you would simply make the payments directly to the lender (which is what you should have been doing anyway). The lender is not going to care that its “borrower” is not servicing the loan. All it cares about is getting its money every month. The drawback however, since you are not on the loan, is that if you have any questions about the loan, unless your grandfather has given something to the lender stating it can discuss the loan with you, the lender is not going to talk to you.

Hopefully this gives you some comfort about your situation.

Des.

[leelee5252]

If the above is true, then he does not have “equitable” interest. We orginally made the payments to the Bank, (CountryWide, now BOA). Then, he wanted us to make them to him. So thank you for clarifying that. The court's would notify us whenever the court date is, I am guessing. So we can state our case, so to speak.

Thanks so much for your help!
Leigh Ann

[leelee5252]

thanks for eveyones input, we have decided the best thing to do, is to move. i am not wanting to keep up this "fight" any longer. my family is no longer my family. they all have changed so much, over the past year and if they want us to get out we will bc I am tired of even dealing with it anymore to be honest. Yes we wil lose quite a bit of money, but in order for my uncle and mother to get their inheritance money, then i will do whatever...Because it is all about them, remember? lmao =/


Thanks so much to everyone,
LA

[helpmeout]

I must let everyone know, my grandfather has another home that is paid for but has since transfered into my uncles name. Also he has a boat and a truck that are bot paid for. He is only filling the bankruptcy to get his name off my house. He otherwise has everything paid for. If he does file, I will lose the house and all the equity in it, I am assuming...

He may have a problem with the transfer of the the paid for house to your uncle, the boat and the truck unless he can exempt them all. Your uncle needs to consult with a BK attorney before doing any more asset transfers.