Legal Question in Real Estate Law in California

Re: property

Does the term 'you're screwed' have any meaning to you? You signed away your interest in the property, but without getting off the mortgage. You'll likely be sued for the mortgage deficiency after sale. You should make a Claim in their BK, but it will definitely be difficult trying to prove you have an interest in the property, unless you have documentation or evidence to back up that claim. If serious about getting counsel, feel free to contact me.

Re: property

I answered your subsequent post first, but wanted to add that the Quitclaim Deed is the trifecta of putting you in a very bad position on this. By deeding your legal interest in the property to your neice, you have effectively given up rights of ownership to the property, in spite of being on the loan.

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Re: property

Well, if you gave them the house as a gift, their bankruptcy is not a legal reason why they would have to give it back, nor does the bankruptcy give you any other rights in property you gave away. You can't take back a completed gift nor can you make any claim against the bankruptcy estate or trustee. In the other hand, if you sold them the house, and they still owe you part of the purchase price, that's another matter - you probably have a claim and it may even be a secured claim if you got and recorded a deed of trust. Finally, there is a remote possibility that if the circumstances of the quitclaim to the niece are vague - so that it is neither a gift nor a completed, paid-for sale - a really inventive real-estate lawyer might be able to find and argue that some strings were attached to the quitclaim, such as a vendor's lien. This is grasping at straws, but since you may need a lawyer regarding the mortgage and the lender's likely loss of its collateral, you might as well discuss the entire situation including a claim in the bankruptcy with a lawyer straightaway.

Re: property

Any interest must be in writing. Were you given a promissory note or did you loan them any money? Contact me directly.