Ch13 Add my name to relative's house?

[kelvinjai]

Here is the scenario:

I am currently living with my sister. The house is under her name only and I am paying her some rent. She asked me if I wanna add my name to the house so I can rebuild my credit faster. But I am under Ch13 (just finished 1 out of 3 years term) right now.

Does anyone know can I do it? One thing for sure is it won't affect the plan payment at all because I'll still pay the same money everything month.

Also, will it affect the mortgage payment since my sister has wonderful credit while mine is

Thanks!

[hhou812hh]

I'm not sure of the answer but how much equity is in the house and what State do you live in? Depending upon the answers some or all of the equity may be exempt, so nothing will happen as long as you keep up with you plan payments.

Good luck!

[HHM]

Simply adding your name to the deed of the home won't do anything to help your credit.

You would need to be added to the mortgage, but I am not sure if you can even do that as I doubt most banks would be willing to rewrite a loan to add another debtor.

[kelvinjai]

Thank you all!

I live in Arizona and not too sure about the equity. But my sister just bought it half a year ago so I guess it's not much.

Do I need trustee approval if I add my name to the deed of the house?

Thanks again!

[Minnymouth]

I would WAIT putting my name on that deed!!!

By doing that it would mean you would have 1/2 interest in any equity of that property...
If something should happen in your Chapter 13 and you had to re-file under Chapter 7 for some reason.....your name on that deed would mean it would or could possibly also have to be included in the bankruptcy.

I'm not certain that the above is a FACT, just a thought!!

Surely you wouldn't want that to happen to your sister and take a chance on both of you loosing the home by some chance....of fate!
Putting your name on it won't help build your credit back up, only time a current payments will do that....
I don't know if I would "rock the boat" or not.....but it is a nice gesture from your sister.....(evidently she thinks a lot of you).....

Think about it,

Minny

[robivi3]

Well, blood is blood but that is how family problems start bigtime. I can't imagine honestly why someone with good credit would add someone in BK to a mortgage or their deed. I doubt that it can be done mortgagewise, you basically would obtain a new mortgage. It's not to put anyone down, we are all BK'ers or ex-BK'ers here, and everyone is real sensitive to anything but the lightest steps.

It may cause an issue for her down the road. The only thing that will rebuild credit is time and credit report correction. The BK will cloud your credit for many years. 10 years on your report and I believe twenty in available public records. For the next twenty years when they ask "have you ever filed for Bankruptcy Protection" you have to say yes. You will rebuild but it takes time.

[HHM]

I agree with robivi, no matter how tight a family is, people always get squirly about money and it almost always creates riffs down the line, I really can't think of any good reason for you to be added to the deed of the house. A house is usually a persons biggest investment, why is your sister suddenly willing to give half of it to you?

As a practical matter, I doubt she could even do it anyway, as it most likely would require the mortgage company(ies) to approave it anyway even for merely adding you to the deed as that act would alter the mortgage companies rights.