How to protect myself if in-laws file bankruptcy?
My in-laws purchased a home and got a loan under my wife’s name prior to us getting married. They used my wife’s name because they weren’t able to get a loan themselves. They make all the payments on the home. My wife and I don’t live there nor do we have any intention of living there as it’s in a bad location. I had no idea about it until after we were already married.
The in-laws are close to losing their business and can barely pay their bills. A bankruptcy seems imminent and i’m pretty sure the house which is mortgaged under my wife’s name will be foreclosed. Is there anything I can do to protect my wife and myself against this? If it makes a difference they just transferred the Deed to my mom in-law, but the loan isn’t. The home is worth $ 180k and they still owe $ 350k since they’ve been making interest only payments.
I worked really hard to get my credit score over 800. I want my own house!!! I couldn’t even qualify for any of the first time home buyer programs because of what my in-laws did under my wife’s name.
Any advice would be greatly appreciated. My brother suggested divorcing my wife (just on paper) so I can at least avoid ruining my credit.