Long story short, my wife and I are on a home loan, where a family member has the title in his name. If the property is foreclosed or a short sale is done and we get 1099c'd, can we inturn 1099 the family member thus removing that "income that never was"?

Do you have a formal loan with that family that you loaned or have a lien on the home?

And why is the loan in your name and the deed in their name, and does your mortgage company know of this.

I know this is complicated, but the loan is in my wife's name (this happened before we were married), and the title is in the cousin's name. He was the broker and said he needed her for the loan because of "zip codes". He said we could 1099 him if she gets one, but I don't trust him. Is this true? THANKS

Well you can always do that, but you will need to show formal loan documents where he has borrowed the money from you or something to show him liable for the loan.


What happens when they go to foreclose and he sues you for a false deed, saying you should not have signed it over to him ?
What happens is your credit is ruined and his is not.
And when they go to foreclose on the property in your name and fine the deed in someone else's name, how is this going to cuase issues in the foreclosure, they can't foreclose on him, since he does not owe them money ?

You are, In my opinion, STUCK! The person whose name is on the loan is legally liable to pay the loan.

The fact that the property is in someone else's name can be construed to be fraud by the mortgage company.

You need to seek legal counsel immediately to get this problems resolved ASAP!