What is the effect of my wife's name on my deed if she filed for bankruptcy? 5 Answers as of October 23, 2013

I was recently approved for a Deed In Lieu by my lender in April 13. I had no liens on the property, and I thought everything was in order. I was told in July 13 that my deed in lieu is being held up because my wife filed for bankruptcy. I'm a little confused because the mortgage is only in my name. If her name is on the deed, what does that have to do with it being approved?

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Stephens Gourley & Bywater | David A. Stephens
If her name is on the deed she has an ownership interest in the property. Thus, a deed in lieu from you does not solve the bank's problems. She cannot sign the deed in lieu without approval from her trustee and maybe the court.
Answer Applies to: Nevada
Replied: 10/23/2013
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
If she listed your bank as a creditor then the bank is not allowed to transfer ownership during the bankruptcy.
Answer Applies to: New York
Replied: 10/23/2013
Janke Legal Consulting | Bruce C. Janke
Even though the mortgage is in your name alone, the security for the mortgage is in both names. The lender can't acquire clean title to the property until the bankruptcy proceeding is closed.
Answer Applies to: California
Replied: 10/22/2013
Law Offices of Linda Rose Fessler | Linda Fessler
I am not a fan of deeds in lieu, but given that you have decided on that rout, as soon as the bankruptcy is discharged, you should be fine.
Answer Applies to: California
Replied: 10/22/2013
Danville Law Group | Scott Jordan
Why would you give your lender a Deed in Lieu of if there were no liens against the property? Didn't the lender file a Deed of Trust? What state do you live in? If in California, California is a community property state and she would probably have a community property interest in the property. As such, the lender cannot move against any property owned by your wife, unless they file a motion for relief from stay or the trustee releases its interest in the property.
Answer Applies to: California
Replied: 10/22/2013
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