I live in North Carolina. have outstanding collections on my credit that are not yet judgments due to medical problems.My fiance is going t...

Question

I live in North Carolina.

have outstanding collections on my credit that are not yet judgments due to medical problems.

My fiance is going to buy a house here in NC that is owned by my daughter and her husband, who recently divorced. THEY actually live in a foreign country where he is stationed with the military.

HER husband's credit was used to qualify for the mortgage at the time of purchase, and the plan is that he will sign a quitclaim but it won't be registered until right before my fiance goes to close on the purchase of said house.

Presumably the current outstanding mortgage couldn't be called in BEFORE the NEW sale is completed due to my daughter's insufficient income to qualify to maintain the mortgage after her husband's name is registered as OFF the deed for the short period before the house is sold to my fiance.

Is this possible without it getting into some huge complex situation? I've been trying to figure out a way that my bad credit will not affect my husband to be adversely before I get a job and negotiate settlement or --worst case scenario--have to file bankruptcy.

Answer

What does your daughter's situation have to do with you and your fiance buying her house?

Since you are not married, nothing can be in your name, because if you don't have judgments, you may. And even if you don't, mortgage lenders are not going to lend to you with outstanding credit issues.

I don't understand what you are asking. Daughter and her ex-husband own the house. Why does son-in-law have to sign a quitclaim deed? Why not just give your daughter power of attorney to sign for him? Why is this an issue with the mortgage lender?? They sell the house to your fiance, the mortgage gets satisfied out of the proceeds of the sale, the deed is put in your fiance's name and he gets his own mortgage or pays cash. What is the problem here?

If you are not married yet how can this person be a husband? If you are seriously thinking about bankruptcy, then file it BEFORE you get married. Once you are married, then you can add your name to the deed so that the home will be owned as a tenancy by the entireties (husband and wife).

How much are your outstanding debts? Can they be resolved at some point? Have you examined alternatives to bankruptcy?

Helping people deal with their debt in a non-bankruptcy context is what I do. Maybe bankruptcy makes sense and maybe it doesn't, depending on your age, assets, income and circumstances. I would be pleased to consult with you about your situation and see what direction you should go. Email consults are free; there is a charge for phone consults. Please email me at [email protected]/* */ if you are interested.