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Roger
Roger, Attorney
Category: Bankruptcy Law
Satisfied Customers: 31022
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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My wife filed bankruptcy. She has no claim to the house were

Customer Question

My wife filed bankruptcy. She has no claim to the house we're living in as it's a premarital asset(not named on the deed). Nor does she appear anywhere on the mortgage. My mortgage company has blocked me from making online payments to my account claiming that "a member of my household has filed bankruptcy and therefore my account has been turned over to the bankruptcy department". Under their "rules" any property involved in bankruptcy proceedings can only make payments by mail. They concede that she is not on the deed or the mortgage buy refuse to lift the sanction because our address is listed as her residence on the bankruptcy petition. I am not a party to this bankruptcy filing.
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  Roger replied 7 years ago.

The lender is doing this because you wife has acquired a fractional ownership interest in the property, which is the marital residence, by virtue of the marriage.

 

That's why the lender is treading lightly around this subject. They don't want to be in violation of the automatic stay or accept money from the bankrupt which was not authorized by the court.

 

I can't say what the difference between accepting a check in the mail as opposed to an online payment is in their eyes. However, if this is the lender's policy, you're likely going to have to live with it.

Customer: replied 7 years ago.
It was established that she can make no legal claim on the property as it was a premarital asset and the mortgage was established before we were married. Their representative said that this rule would apply to anyone living in this residence and using the address when filing bankruptcy, including Dependants. And again, I was not a party to this filing in any manner.
Expert:  Roger replied 7 years ago.

If this has been established informally or formally, my suggestion is that you have your spouse execute a quitclaim deed to you for any and all interest she may have in the property.

 

This will eliminate any question about whether she has an ownership interest.

 

Once you get this done, you can send a copy to the mortgage company, and they should allow you to resume online payments.

Customer: replied 7 years ago.
that was done on the day of filing. Therein lies the issue.
Expert:  Roger replied 7 years ago.

Ok. It is likely that the lender has no idea about this transaction, and if it does, it may be afraid that this is a fraudulent transfer and could be reversed by the trustee.

Customer: replied 7 years ago.
even though it's all been channeled through the Bankruptcy Attorney's office? Should I then contact the Trustee and get him involved?
Expert:  Roger replied 7 years ago.
I don't think there is a need to get the trustee involved. It should be sufficient to provide any documentation that the property has been transferred and the court's acknowledgment that the transfer has been approved.
Customer: replied 7 years ago.
Thanks
Expert:  Roger replied 7 years ago.
No problem.

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