bankruptcy laws and family

[waggy]

OK about year ago we bought our house from my wife's mother. We bought it out of foreclosure status.

Since she breeds dogs and cats we allowed her to keep them on the property since she had a kennel built. She signed a contract paying us $489 (or so can't remember) a month for boarding. The contract stated we were NOT to feed/water or take care of them in any way. just supply a place for them to live.

Well 3 months after we moved in she decided that was to much and said she was only going to pay $250 and would not move the dogs or cats. My wife while really ticked off did not want to sue or sale them even though we had a contract which said we could.

Well about that time she also started bankruptcy. She went to court about it like a month or two ago (not sure when).

Well we went to pay the propane bill. We pay $130 a month every month. When we went in they told us the bill was $850! they wanted us to pay what she owed from over a year ago! we argued with them and walked out paying what we owed. We forgot about it and just continued on. There excuse was since it was the same family in the house they just continued the account!

Last week we get a letter from a creditor saying that if we did not pay $14000 they were putting a lien on the house! i called them to find out why i owed them $14k (i do tend to forget to pay bills every now and then, but nothing like this!). they told us it was Mindy (wifes mother) and if it was not paid they were going to take the house. i told them she sold us the house to us. They said what she did was try to go around the bankruptcy laws by just changing the name on the house.

She said they knew she was there daily and she still had property on the house. She said we were breaking the law by committing bankruptcy fraud!


We called a Lawyer about it. He said since we didn't go through a Realtor and she did file for bankruptcy so fast he said they may have a case. He said we could fight it (cost a lot) but suggested putting the house up for sale ASAP and say we were unwilling participants of the fraud.

WTF this can't be legal! WE are also talking to more lawyers about this. Its fricken insane!

 

[hjo3]

ATOT IS MY BLOG, LOLOLOL

 

[ElFenix]

you buy a house from your mother in law from foreclosure and you're surprised you're getting pegged with the bills?

 

[DeadByDawn]

Never work deals like this with family, especially if they don't pay their bills.

 

[FoBoT]

did you use a lawyer for the real estate transaction? the sale of the house from her to you?

if not, you better listen to the lawyer, you may be screwed


someone that is about to file bankruptcy cannot just sell everything to get cash to spend, the law lays it all out so that people that plan on filing don't/can't run up even higher debt just to party

if you don't like what lawyer #1 said, talk to lawyer #2 and lawyer #3

but if they all say the same thing, you're screwed and you better just do what the lawyer says, even if that leaves mom'in'law in jail or homeless.

 

[waggy]

Originally posted by: ElFenix
you buy a house from your mother in law from foreclosure and you're surprised you're getting pegged with the bills?

yes i am.

amazed that it can happen. i got a loan and everything in my me and my wife's name.

I'm just in shock. I really do not know what i can or will do. we can't afford $40+k.

just venting to keep from doing something stupid like calling her. sigh

 

[Antisocial Virge]

A guy I know was looking at a house that was in foreclosure status. He was already to buy it but then someone mentioned the possibility of creditors having a possible stake in the house. He walked away really fast from the deal. This was a deal that didn't even involve relatives like yours does but they still can come after the house I guess.

 

[DaveSimmons]

On the bright side, your mother-in-law's creditors will no longer be cheated out of their money by her once they collect it from you.

And you've learned not to get involved financially with her ever again. Some people are just bad news, even if they are kin.

 

[ElFenix]

Originally posted by: waggy

Originally posted by: ElFenix
you buy a house from your mother in law from foreclosure and you're surprised you're getting pegged with the bills?

yes i am.

amazed that it can happen. i got a loan and everything in my me and my wife's name.

I'm just in shock. I really do not know what i can or will do. we can't afford $40+k.

just venting to keep from doing something stupid like calling her. sigh

did you see if there were other liens on it? employ a title insurance company to look out for that? anything to cover your ass? at least you've got a real loan from a real bank so you can prove it wasn't a fraudulent transfer.

 

[dirtboy]

Did you actually use a Realtor or lawyer to transact the house, or did she just quick claim it to you? If she did the later, you might be on the hook for everything.

 

[FoBoT]

throw her in front of the bus

if she goes to jail for fraud, you won't have to take care of the dogs anymore. or her.

 

[huberm]

if you closed w/ a title company you should have gotten title insurance, which should help you out (i think)

 

[everman]

Get a lawyer, now. atot can't help you.

 

[acemcmac]

holy crap. lawyer up! STAT!

 

[mugs]

That's an unfortunate situation, and I hope it works out for you

 

[Chompman]

You could just always muder your mother in law and gain the insurance money after buying the plan the day before you did it... :evil:

 

[waggy]

Originally posted by: everman
Get a lawyer, now. atot can't help you.

yeah we talked ot one. going to talk to another.

so far the situation looks bad. im just frustrated and needed to vent heh

 

[ElFenix]

Originally posted by: dirtboy
Did you actually use a Realtor or lawyer to transact the house, or did she just quick claim it to you? If she did the later, you might be on the hook for everything.

quit claim, you mean.

yeah, if its a quitclaim, she sold you only the interest she had in the house

the good news is you can sue her too

 

[Vic]

Originally posted by: Antisocial Virge
A guy I know was looking at a house that was in foreclosure status. He was already to buy it but then someone mentioned the possibility of creditors having a possible stake in the house. He walked away really fast from the deal. This was a deal that didn't even involve relatives like yours does but they still can come after the house I guess.

He walked away foolishly. There's this amazing modern invention known as title insurance. Perhaps you've heard of it?

As waggy said he got a loan on the house when he bought it, then assuming it's conventional mortgage, it's more or less certain he had the title of the house searched for prior liens and acquired title insurance, plus had the vesting changed into his and his wife's names and out of his mother-in-law's name. This means he bought the house with a clear and insured title. If that is the case, it's my opinion that these creditors don't have a leg to stand on. You cannot lien a new homeowner for the previous owner's debts, regardless of their relationship.
It is very common for creditors getting hosed through a bankruptcy to lash out in all directions. Your wisest move here IMO would be to contact your mother-in-law's bankruptcy attorney and advise him of the situation, and see if he will help you get your mother-in-law's creditor off your back.
Good luck.

 

[rmrf]

The two worst people to do or go into business with:

1. Family
2. Friends

Apparently you had to learn the hard way.

 

[waggy]

Originally posted by: Vic

Originally posted by: Antisocial Virge
A guy I know was looking at a house that was in foreclosure status. He was already to buy it but then someone mentioned the possibility of creditors having a possible stake in the house. He walked away really fast from the deal. This was a deal that didn't even involve relatives like yours does but they still can come after the house I guess.

He walked away foolishly. There's this amazing modern invention known as title insurance. Perhaps you've heard of it?

As waggy said he got a loan on the house when he bought it, then assuming it's conventional mortgage, it's more or less certain he had the title of the house searched for prior liens and acquired title insurance, plus had the vesting changed into his and his wife's names and out of his mother-in-law's name. This means he bought the house with a clear and insured title. If that is the case, it's my opinion that these creditors don't have a leg to stand on. You cannot lien a new homeowner for the previous owner's debts, regardless of their relationship.
It is very common for creditors getting hosed through a bankruptcy to lash out in all directions. Your wisest move here IMO would be to contact your mother-in-law's bankruptcy attorney and advise him of the situation, and see if he will help you get your mother-in-law's creditor off your back.
Good luck.

thats what i thought.

we did have a lawyer at the signing ($400 to show where to sign! heh) we have a normal fixed rate mortgage (think a lot of the new ones are a little risky).

i am going to contact her bankruptcy attorney today. I just got mad and worried when the on attorney we seen said to sale it and move on.

And yes as others have said i have learned a good leason. While i will continue to deal with family, well at least my father, I will not even help her parents buy gas if they are stranded in the middle of a snowstorm.

I told my wife we are not helping them anymore in any way. We used to buy my wife's little sister (13) most of her clothes. Heck when she was 12 she came over to stay the night and i found out she was wearing a bra from when she was 9 (sadly she well-endowed for 12) and underwear that was 3 years old. so I took her shopping to get new ones (should have waited until my wife was home. not something i ever want to do again).

this is a family that makes OVER 3k a month AFTER taxes and yet they are always broke.

heh thanks for letting me vent and giving some good advice. i did not think to call the bankruptcy attorney.