How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Roger Your Own Question
Roger
Roger, Lawyer
Category: Real Estate Law
Satisfied Customers: 31019
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
6704987
Type Your Real Estate Law Question Here...
Roger is online now
A new question is answered every 9 seconds

My wife holds title of her house as her sole and separate property.

Customer Question

my wife holds title of her house as her sole and separate property.
The bank of america made a loan on the house under my name only. The loan has now been sold to another investor and i am in default. I have recently filled for bankruptcy. What are my options
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Roger replied 1 year ago.
Hi - my name is ***** ***** I'll be glad to assist. What state are you in?
Customer: replied 1 year ago.
california
Expert:  Roger replied 1 year ago.
Thanks. When you made the loan, did your wife sign something agreeing to allow her property to be used as collateral?
Customer: replied 1 year ago.
no
Expert:  Roger replied 1 year ago.
Ok. How were you able to obtain a loan on her house without her consent....or is that part of the problem? Does your wife know?
Customer: replied 1 year ago.
The trustee for my bk asked for the deed of the house and to my surprise the title is under my wife;s sole and separate property
Customer: replied 1 year ago.
r u there?
Expert:  Roger replied 1 year ago.
Ok. Thanks. If the bank loaned you money and took the house as collateral without getting consent from the title owner, then the bank likely has an unsecured lien......meaning that the bank cannot foreclose on the property because the owner didn't give consent.
Expert:  Roger replied 1 year ago.
The main thing is to make sure you didn't make any improper representations to the bank about ownership of the property.
Customer: replied 1 year ago.
they foreclosed the property and i had to file bk to stop the sale. what are my options?
Expert:  Roger replied 1 year ago.
Your liability for the loan will be discharged during the bankruptcy.......but your wife's property is on the hook UNLESS she challenges the loan and claims that the lender doesn't have a proper lien on the property.
Expert:  Roger replied 1 year ago.
However, for your wife were to do this, it could implicate you with the lender....
Expert:  Roger replied 1 year ago.
So, your wife would likely have to implicate you in order to challenge the loan......and she may not be willing to do that.
Expert:  Roger replied 1 year ago.
One possible solution is for you to convert to a chapter 13 and have her join you in the filing.....and then try to work out a payment plan to pay the debt back over time....with longer terms.
Customer: replied 1 year ago.
if the bank made a mistake and did not verify title, could i benefit from this. To be honest because the loan was made under my name i was under the impression that the title was under my name. Another item is that the original lender assigned the loan to someone else
Expert:  Roger replied 1 year ago.
The back is likely going to claim that it relied on your representations, which is going to point the finger back at you. Sure, they may have dropped the ball by not verifying title, but if you represented that you were the owner, it's going to be hard dodging that.

Related Real Estate Law Questions