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Ask WALLSTREETESQ Your Own Question
Category: Bankruptcy Law
Satisfied Customers: 17248
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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I live in Oregon. I own an investment property (residential)

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I live in Oregon. I own an investment property (residential) with a friend who is Calif. I am actually in the process of losing my own home in foreclosure (unless a miracle modification comes through). At that point I will probably file bankruptcy. The mortgage for this income property is in my friends name, but my name is XXXXX XXXXX deed. What are the ramifications if I file bankruptcy? Can I quit claim the house back over to my friend (which is how I got on the deed in the first place)? This is all almost too much for my mind. In addition, I've been told that if I talk to an attorney, I can then make no changes like this. Your thoughts?
do you plan on keeping the investment property and are you paying the mortgage??
Customer: replied 7 years ago.
We would like to sell it within the next year, and take a loss. We take a loss each month, andeach of us subsidizes it by half. There is a bank account is both of our names, but Linda actualy "pays" the mortgage, as the loan is in her name.
is their any equity?
Customer: replied 7 years ago.
No, we can't sell it for what we owe.
if you file a bankruptcy you can either list the investment property in your bankruptcy and have the court take it over and sell it, the mortgage since it is not in your name will not be discharged and if the property is sold the partner would have a chance to keep the property by making the payments, as usual. It is in your interest to have the property disposed off through the bankruptcy, and not a law suit where they would get a judgment against you.

If you quit claim the deed the trustee will find out, and will think it is a fraud, if you want to avoid the hole issue, you can reaffirm the property, and since their is no equity, it will not be an issue.
Customer: replied 7 years ago.
So does that mean I disclose it in the bankruptcy but not include it in the debtors I wish to dischrge. And, I won't deed it back to her?
Yes disclose it, and list the mortgage, and in your papers state your intention to reaffirm the debt, meaning you want it outside of the bankruptcy and will pay it on your own
WALLSTREETESQ and other Bankruptcy Law Specialists are ready to help you
Customer: replied 7 years ago.
Thank you. YOu have given me a little peace of mind tonight.
good luck.