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I bought a house on contract. House owner retains title and I continue paying the loan. The owner is now facing bankruptcy.

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asked on Jun 26, 2017 at 17:54
by   Kentliew
edited on Jun 28, 2017 at 09:35
 
In year 2000, I have bought a house from my friend, we have ask a lawyer to do a Sale & Purchases agreement for taking this house, but since I was blacklisted by bank, I was unable to get a housing loan to buy this house, so I continue my friend's bank loan under his name which is stated in the sale and purchases agreement and I payment on behalf the loan instalments until todate.

Recently, my friend is facing bankruptcy, now the title of the house is under my friend's name, I am worry that is this house will taken by the creditors of my friends even though we have done a Sale & Purchase agreement last time.
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6 Answers

answered on Jun 26, 2017 at 18:19
by   jeff005
edited Jun 26, 2017 at 18:21
by   jeff005
If the S&P in 2000 is properly stamped and with proof of joint payments to the housing loan, all you can do is to file POD to JIM in the eventuality your friend is bankrupted. The most you can do is claim 50% of the auctioned proceeds. But JIM may treat you as any other POD creditor and you may get back very little... on a monthly basis.
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answered on Jun 26, 2017 at 20:19
by   Kentliew
edited Jun 26, 2017 at 20:30
by   Kentliew
Hi Jeff005,

FYI, the S & P is properly stampted, and I have kept all the payment receipts that I have paid ( but the name of the receipts is under my friend's name). Is it the house still belong to my friend even we have made a S&P agreement, whether I can use that S&P to proof I am the owner of the house so their creditor can't get my house ? How I going to proof that the house is me ? Can my friend have the right  sell the house and take the money away ?

Thanks
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answered on Jun 26, 2017 at 23:32
by   jeff005
 Can my friend have the right  sell the house and take the money away ? 
Unfortunately YES..

 Is it the house still belong to my friend 
It belongs to the name registered in the Title Deed and recorded in the Land Office.

You have a stupid lawyer that drafted out the S&P (his lawyer ke?)
It should be drafted out in the manner that the property as joint names but he is the sole borrower of the bank loan. Just think of those wives who are not working but being full time homemakers but their names is in the property title deed?.
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answered on Jun 27, 2017 at 01:53
by   Kentliew
Hi, Jeff005,

Can I have other way to protect the house, ie to get  a lawyer since I have sign a S&P with my friend ? Can I ask a lawyer to caveat the house  ? Please advise me how to do now. 

Thanks
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answered on Jun 27, 2017 at 02:07
by   jeff005
Can I ask a lawyer to caveat the house  ?
Yes.. possible but this caveat would not stop the insolvency from getting it.

I have not bought a house before. Best you consult a Conveyancing lawyer.
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answered on Jun 27, 2017 at 11:22
by   Kentliew
Hi Jeff005,

Thank a lot for your advise.
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