Legal Question in Bankruptcy in California

house and bankruptcy

My father who is 85 yrs. old filed for bank.. 10 yrs. ago, is he obligated to continue paying his mortgage, which he has been doing so. Can he quit claim the home to a family member?


Asked on 5/29/07, 5:23 pm

2 Answers from Attorneys
Carl Starrett Law Offices of Carl H. Starrett II

Re: house and bankruptcy

Filing for bankruptcy does not eliminate secured debt such as the lien on your father's house. If he does not make the mortgage payments, the bank could foreclose on his home.

Your father can transfer the title to anybody he wishes, but the new owner would take title subject to the bank's deed of trust.

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Answered on 5/29/07, 5:37 pm
JOHN GUERRINI THE GUERRINI LAW FIRM - COLLECTION LAWYERS

Re: house and bankruptcy

If it worked that way, everyone would simply file for bankruptcy. The house is collateral on the loan. If you file bankruptcy and want to keep the house, you sign a document called a "reaffirmation agreement". If you don't pay the mortgage, your house goes into foreclosure.

He can quitclaim the house to anyone he wants - though the terms of the loan may in fact prohibit that. At any rate, the quitclaim will not extinguish the mortgage obligation. It must still be paid, or the house will go into foreclosure.

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Answered on 5/29/07, 5:57 pm


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