Legal Question in Wills and Trusts in Massachusetts

I co own a mortgage with my mother that we are putting in for a short sale. At the same time, I am planning to get married and we just bought a mobile home. I wanted the mobile home to be in my future husband's name only and not mine as I fear the bank on the home for short sale (or foreclosure if that doesn't work) will come after the mobile home to pay for my mother's and my mortgage on the house for shortsale (or foreclosure). But the mobile home park owner says it's considered a vehicle and they can't come after it as it doesn't show up on any deeds, etc. Is this true? Or should I be worried and try to take my name off the mobile home and put it in my future husband's name only?

I hope this question makes sense.


Asked on 6/26/11, 2:49 am

1 Answer from Attorneys

First of all, putting assets out side of a creditor's reach with intent to make yourself uncollectable is a fraudulent transfer and the bank will seek to set it aside.

If you and your mother are attempting a short sale, the bank will either agree and give you and/or your mother an unsecured note or will write-off the debt. If they foreclose they will seek a deficency and most likely at somepoint in the future seek to recover that amount.

I would suggest you make a deal on the short-sale or assuming there is only one lender, offer a deed in lieu of foreclosure or short sale. If you have a second mortgage owned by a different lender you can't do a deed in lieu.

I would ask one more question, did you sign a note to the lender? if not, while you may be on the mortgage you are not on the note and as such the debt is not yours. If you did sign the note or guarantee the note, well a short sale is your best bet.

Your last option is to file bankruptcy, which I do not handle.

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Answered on 6/26/11, 12:32 pm


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