More details to this question:
My son bought a house from a friend, the deed is in his name and the loan is in the friends name. The people who he purchased the house from already have two other properties they own and are going to be filing chapter 13. We don't believe there is any equity in the property and prior to the selling my son the property they did a loan modification and part of the original loan amount was forgiven. If they file what happens to the property? Will this show up on my son's credit ever or ever effect my son? My son is current on the loan.
4 ANSWERS
Immigration Attorney serving Arlington, TX
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Law Office of Pho Ethan Tran, PLLC
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Has the title been transferred to your son yet?
Answered on Jul 01st, 2013 at 11:58 PM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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If you don't file bankruptcy it doesn't show up on your credit report.
Answered on May 18th, 2012 at 12:04 PM
Bankruptcy Law Attorney serving Madison Heights, MI
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Able Legal Services, PLC
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You can see if you qualify for a loan modification by calling your lender, and requesting one. You can also do this through an attorney who may be more dilligent and skilled at following through, and holding the creditor accountable to the law.
Answered on May 17th, 2012 at 4:06 PM
Criminal Defense Attorney serving Deltona, FL
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R. Jason de Groot, P.A.
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The loan is not in his name, so it won't affect his credit, and won't do any good for his credit either. Usually, when a house is sold a new mortgage is taken out. It is probably a violation of the mortgage to sell the property and not pay off the existing mortgage. That is known as a due on sale clause and is standard in all mortgages. If the people who he bought the house from file a chapter 13 bankruptcy, he had better get to a bankruptcy attorney for legal advice. There are many things that can happen, and no one can give him legal advice without reviewing the documents surrounding the purchase. Why wasn't the mortgage paid when he bought the home? It sounds very fishy to me.
Answered on May 17th, 2012 at 3:32 PM