Will it affect my sisiter`s house
July 21st, 2010 by Questions
My sister and I own a house fo 50% interest each. Tow month ago, due to my poor financial situation, I borrowed money from my sister secured by the equity of the house( I wanted to sell my portion to her, but the mortgage bank did not approve her). Now my situation is getting worse and worse which may lead to bankruptcy finally. She is worrying about the house and the money lent to me. Are the house and the money still sercued? Even she sells the house, no other creditors can seize the money except the mortgage bank?
Posted from: Alberta
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July 22, 2010 at 8:46 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
This largely will depend on how the contract was done up, whether you can trace the transaction (i.e. the amount of the security was transferred from you to your sister and is traceable) and how you did up the documentation. If you used legal council for this transaction and they property registered your sisters security interest against title to the property then you shouldn’t have and difficulties. However, if the transaction is not traceable, if you didn’t set the documentation up properly or failed to have your sisters interest registered at land titles, then there is a good possibility that your creditors can go after the house, or if you file for bankruptcy that the house may be impacted.