Quit claim deed???

[clb123]

What if I was having a tough time making my house payments after filing in October (old law) and needed to quit claim my house over to my brother. And then what if he sold it and made money over and above what was owed on the 1st and 2nd mortgages? Anybody know??? Thanks!!!!

[alh]

Not really sure I understand the question, but if you quit claimed the deed to him, the house is his. Any profits would be his as well.

[SinkingFast]

I don't see quite how you could Quick Claim Deed when you have mortgages on the house. Seems the Court House wouldn't even allow it. I may be wrong about that.

[clb123]

Well he would sell it and pay off the mortgages. Then any money left would be his. Could the trustee touch it?

[SinkingFast]

The only person I've ever known the did a QCD didn't have a mortgage on his house. Your mortgages are on file against your deed at the Court House.

Call the Court House and see if it's even possible to do what you're wanting to.

And it may cause problems for prospective buyers when it comes time to run the Title for Title insurance. You might wanna also contact a Real Estate agent or 2 as well since you're looking to try and sell under a QCD.

[clb123]

I am a real estate agent and so is my brother............we can get around that title issue.
my only concern is if the trustee could try and take the money if there is any left after the sale........
Sorry it is so confusing but I am trying to make it and struggling. Real estate is such an uncertain business.
Thanks for your help!

[aa06a47]

Well he would sell it and pay off the mortgages. Then any money left would be his. Could the trustee touch it?

Well, I don't know what they do to the people that benifits (I assume your brother would benifit) from fraudulance conveyance, but you might learn what they do to someone who does commit the fraud. At best, they would cancel your bk discharge...at worst, who knows.

Also, I don't think you can deed a property that you don't own to someone. You don't have a clear title to the property. I think the mortgage industry pretty much has a lock on that type of fraud.

[clb123]

Really? You think that would be considered fraud?!! Wow that is scary!

[aa06a47]

Really? You think that would be considered fraud?!! Wow that is scary!

The entire event is bankruptcy fraud. You cannot transfer assets to someone else to protect them in bk court. Your also admitting you can get around the law (deeds, ect).....come on now. I'm not the sharpest pencil in the box, but have this one figured out.

[clb123]

My Bk is discharged and closed.

[aa06a47]

Then wait 180 days after it is discharged and do what you need to do.

[SinkingFast]

Aaahhhhhh. That's an entirely different story then.

You have to declare any property transfers for a full year prior to filing BK. If you hadn't filed yet and did the QCD, you'd have to declare it in your BK, and it could look like fraud.

Are you within the 180 day period post Ch7 BK, or in a Ch 13 plan?? Is that why you wanna do the QCD??

You still might get caught at it. Trying to avoid the windfall thing. If the Trustee learns of the sale of your house, and investigates how the transaction took place, you could have a pack of trouble on your hands.