quit claim deed on deathbed
My father-in-law quit claim deeded his house to my husband prior to his entering Hospice. The decision was made so the bancruptcy lawyers wouldn't take away his house when he was unable to pay his restitution while out of work and still alive.
1. Can they still take the house even though we now own it?
2. Our SS# was never entered on the deed, how do we do taxes at the end of the year?
3. After he dies, if we decide to rent the house do we need to refinance the property? Our lawyer said we could just leave it with the current bank but that doesn't sound right.
4. Can this ever reflect poorly on our credit, if so how?
Please help 
[quote]
On 2003-05-15 17:01, puzzles7 wrote:
My father-in-law quit claim deeded his house to my husband prior to his entering Hospice. The decision was made so the bancruptcy lawyers wouldn't take away his house when he was unable to pay his restitution while out of work and still alive.
1. Can they still take the house even though we now own it?
A: Yes, if your father-in-law violated the fraudulent conveyances act in your state, the creditors can get the bankruptcy judge to set aside the conveyance.
2. Our SS# was never entered on the deed, how do we do taxes at the end of the year?
A: The same way you would in any other situation. Claim the mortgage interest and property taxes on your tax return, provided you paid those expenses yourself.
3. After he dies, if we decide to rent the house do we need to refinance the property? Our lawyer said we could just leave it with the current bank but that doesn't sound right.
A: Your lawyer is correct. But check the loan documents. Most loan documents or the Garn-St. Germain Act will prevent a lender from accelerating the loan under the due-on-transfer clause in the loan documents if you acquire a property by inheritance. However, the problem here is you acquired it by gift and therefore the lender might be able to call the loan if the lender found out about the transfer and demanded the immediate payment of the entire principal amount. (In fact, I bet the lender could accelerate the loan now if it found out about the transfer).
4. Can this ever reflect poorly on our credit, if so how?
A: Yes, if the lender calls the loan all due and you are unable to refinance the property before the lender puts the property into foreclosure.
Taxjunkie