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Roger, Lawyer
Category: Real Estate Law
Satisfied Customers: 31770
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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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: 2 years ago.
Category: Real Estate Law
Expert:  Roger replied 2 years ago.
Hi - my name is ***** ***** I'll be glad to assist. What state are you in?
Customer: replied 2 years ago.
Expert:  Roger replied 2 years ago.
Thanks. When you made the loan, did your wife sign something agreeing to allow her property to be used as collateral?
Customer: replied 2 years ago.
Expert:  Roger replied 2 years 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 2 years 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 2 years ago.
r u there?
Expert:  Roger replied 2 years 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 2 years 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 2 years ago.
they foreclosed the property and i had to file bk to stop the sale. what are my options?
Expert:  Roger replied 2 years 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 2 years ago.
However, for your wife were to do this, it could implicate you with the lender....
Expert:  Roger replied 2 years 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 2 years 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 2 years 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 2 years 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.