What And If I Can Help In Preforeclosure?

lojia profile photo

House value $410,000., will go into foreclosre as of 7/1, 3 mos behind on payments

owes $330,000 + 3mos so say 340,. Her name is not on deed. This is a divorce, She wants $25, has about $70 in equity. Can I pay cash to bank once it goes into foreclosure before auction, she said bank gives her 1st right of refusal, if she comes up with cash, without her husband (who is on the deed,not her) to buy the house and then I can sell, give her $25 or do a 50/50 spreadwith her. The husband is filing bankruptcy and wants her evicted and to get nothing?

Thanks.

Comments(2)

  • JohnLocke17th June, 2007

    lojia,

    Glad to meet you.

    First there is no reason to deal with the wife, she doe not own the property, period. So whatever she wants does not enter into the picture. The bank would not give her the deed without her husband transferring the deed to her.

    Secondly if the husband files Bankruptcy the Bankruptcy Court will take over the assets of the husband, which will include the house.

    Do not listen to the wife on this one as it sounds like she is looking to find someone to give her a gift of $25K, I would not let it be yourself.

    John $Cash$ Locke
    [addsig]

  • JohnLocke17th June, 2007

    lojia,

    First is there any other kind of divorce than a bitter one....

    He would have to Quit Claim his interest in the property over to your friend as he has an interest in the property regardless of whose name the mortgage is in. This is the correct procedure to take full title unless it is relinquished in a divorce decree for her to take full ownership. Either one of these things need to happen for her to give clear title to someone else.

    Now when he files bankruptcy in the courts eyes it may look like he transferred the property (an asset) to his wife to avoid including it in the bankruptcy. This could be considered a fraudulent transfer by the court as it was transferred to his wife and the court can unwind the transfer.

    Normally to with stand the scrutiny of the bankruptcy court a transfer to a third part innocent, or someone the property owner is not related to has a much better chance of not being reversed by the court.

    In other words he is in the picture, no matter how bitter the feelings are, cash (not me in this case) has a way of smoothing things over a tad. So how much will it take for him to sign over the property to her?

    If you were to get this one behind you, then the bankruptcy will be your next challenge and here is where an attorney would come in by talking with the bankruptcy trustee to see if the transfer to your friend would be accepted by the court.

    John $Cash$ Locke
    [addsig]

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