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Law Girl
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Category: Bankruptcy Law
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We owned a home in Columbus, OH in 2000. We had to move to ...

Customer Question

We owned a home in Columbus, OH in 2000. We had to move to NC in 2004. A real estate invesment group bought our home from us. We paid three month''s of our mortgage as part of the transaction. We also completed: Argreement & Declaration of Trust, Standard Real Estate Purchase & Sale Agreement, Warranty Deed to Trustee, Land Installment Contract, Assignment of Beneficial Interest in Land Trust, Bill of Sale, Limited Power of Attorney, and Letter of Agreement and Addendum. The deed was transferred to a trust and the mortgage remained with us. They paid the mortgage for the next 3.5 years until they experienced financial hardship. They haven''t paid the mortgage for the past 3 months. They plan to file Chapter 7 by July 15th. They''re going to send us a quit claim deed within 20-30 days. What would happen if we don''t get it before they file bankruptcy? What legal action can we take today so we can get the deed to sell our home asap. Does automatic stay apply bar us from getting our deed?
Submitted: 8 years ago.
Category: Bankruptcy Law
Expert:  Law Girl replied 8 years ago.

DearCustomer

The automatic stay protects the debtor's property from being attacked by a creditor. However, the stay does not prevent the debtor from turning the property back over to the creditor. If they file bankruptcy, then you have a right to be listed as a creditor. In which case you can request that the property revert back to you since you still owe the mortgage.

You have the ability to take them to court to quiet title to the property (a legal action that could force the property to be transferred back to you by court order) however, this is not a quick process, may require you to retain an attorney, and relies on the court's calendar. You may also sue them for breaching your agreement. However, prepare for any judgment you obtain to be discharged in their bankruptcy.

Please let me know if you have any other questions, or require clarification of this matter. Otherwise please hit "ACCEPT", so I may receive credit for my response. Tips and feedback are also appreciated.

Good Luck!

-KAT

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Customer: replied 8 years ago.
Reply to Law Girl's Post: Kat, thanks for your reply. I will "accept" your answer. My only "quick" feedback on your reply is this... are you saying that basically we will have to pursue a "quiet title" via legal action against this organization to get the title back in our name because without doing so we can't possibly put this home on the market presently to sell it? I just needed clarification on that point. I'm good on the rest of your answer. Thank you.
Expert:  Law Girl replied 8 years ago.
If the title is in the organization's name, then you really do not have marketable title to convey. If the organization does not execute a deed to title the property back to you, then you will need to obtain title from them, hence the action to quiet title.

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