Ask Me Help Desk - Refinance Loan WITHOUT Quit Claim Deed Executed

Hello,
My step-son's name is on Title on our home. We want to refinance our Adjustable Loan, remove him from Title, therefore, when our new loan is established, this would completely ABSOLVE him from his original loan on our house. He REFUSES TO EXECUTE THE QUIT CLAIM DEED "PRIOR TO US GETTING THE LOAN" How??

The Bank fully approved us, but said that they cannot pull Escrow papers or proceed any further WITHOUT THE EXECUTION OF THE QUIT CLAIM DEED SIGNED, NOTARIZED AND RECORDED WITH CLARK COUNTY RECORDER'S OFFICE.

The Bank has given him (2) OPTIONS that seem agreeable to everyone but HIM!

OPTION (1) Add my name to the Title during the Escrow and the completion of my ALREADY APPROVED LOAN. His name on Title falls, his Mortgage is then PAID OFF which then ABSOLVES HIM FROM ANYMORE RESPONSIBILITY.

OPTION (2) Execute the Quit Claim in order to complete our Refinance on our Adjustable loan so that the Bank and the Escrow Dept. can move forward.k

My step-son REFUSES both options! Now what?

We've called so many Lenders and Escrow Depts and they all say that they cannot move on this if he REFUSES either option. They said that no Lender or Escrow Dept. can LEGALLY ADVANCE OUR LOAN. The Bank and Escrow Dept. would be held to a lawsuit?

Please advise. Thank you

Is his name the ONLY name on the title or are you there as joint tenants. If his name is the only name, then you are not refinancing. What you are doing is buying the home from him. At the loan closing, both of you attend and he signs the deed over to you at that point. This is SOP. So I don't understand the problem. Even if he is not the sole owner, then this still should be handled at the loan closing. That's when the transfer of ownership occurs. Your lender writes out a check to pay off his lender and he signs over the deed.

We have a WRITTEN MEMO from him, dated and signed which states the following:
"WE ARE THE RIGHTFUL OWNERS AND ALWAYS HAVE BEEN." "WE ARE RESPONSIBLE FOR THIS MORTGAGE"

We paid the down-payment, monthly mortgage payments for (9) yrs. sewer bills, Homeowner Association invoices, etc. etc. etc.

We need a LEGAL answer please so that we may submit this in court to complete our loan.

Please advise. Thank you

Thank you for your response. I just edited my question which states in a written memo that we are the "rightful owners and responsible for this mortgage" Our Bank states that they can Refinance the existing loan as they have miles of receipts from us on our monthly mortgage payments which definitely proves that WE, not my step-son have been making the mortgage payments for all these years. The Bank and I do not want to buy our own home from him as this would cost us much more money than what we originally paid for it and this would "trigger" a re-assessment on our taxes. Am I right? Thank you

Quote:

Originally Posted by davis38

Hello,
My step-son's name is on Title on our home. We want to refinance our Adjustable Loan, remove him from Title, therefore, when our new loan is established, this would completely ABSOLVE him from his original loan on our house. He REFUSES TO EXECUTE THE QUIT CLAIM DEED "PRIOR TO US GETTING THE LOAN" How?????????

The Bank fully approved us, but said that they cannot pull Escrow papers or proceed any further WITHOUT THE EXECUTION OF THE QUIT CLAIM DEED SIGNED, NOTARIZED AND RECORDED WITH CLARK COUNTY RECORDER'S OFFICE.
...

My step-son REFUSES both options! Now what?
...

We have a WRITTEN MEMO from him, dated and signed which states the following:
"WE ARE THE RIGHTFUL OWNERS AND ALWAYS HAVE BEEN." "WE ARE RESPONSIBLE FOR THIS MORTGAGE"

We paid the down-payment, monthly mortgage payments for (9) yrs., sewer bills, Homeowner Association invoices, etc. etc. etc.

We need a LEGAL answer please so that we may submit this in court to complete our loan.

Please advise. Thank you

I am getting confused with all the "we's": why do you have a memo from him stating "We are the rightful owners...We are responsible for this mortgage."? What is this Memo all about? Does your step-son have any money invested in this property? Why does he refuse to quit-claim his interest?

First, please do not start a new thread for a follow-up question. Use the Answer This Question or Quick Reply to add a follow-up. I've merged the two threads and edited out the original part of your second post.

Whatever memo your SIL signed has no bearing here. It might have a bearing if he tried to kick you out of the home. But here it has no bearing. The legal facts are the deed is in his name. Therefore he is the owner. For the deed to be changed to your name, you have to buy the house from him. Yes the mportgage company can call it a refinance. I gather you are refinaincing with the same lender. But whatever they call it, you want the ownership of the property to change. The only time I know of that a change in ownership would not be considered a sale is if someone is adding a spouse to the deed.

Whether a sale would change your assessment or not I don't know. What I do suggest is that you get a real estate attorney to unravel this mess for you.

But I still think this is all handled at the closing. The bank transfers the money from the new loan to payoff the old loan. At that point the owner signs the deed over to the new owners.

The source of my confusion may be the title of the thread: "Refinance Loan WITHOUT Quit Claim Deed Executed". Ordinarily, a quit claim deed is not the deed of choice used to transfer one's ownership of property to another.
Is your SIL the owner of this property, or do you own it jointly? Who signed the mortgage?

Quote:

Originally Posted by davis38

Hello,
My step-son's name is on Title on our home. We want to refinance our Adjustable Loan, remove him from Title, therefore, when our new loan is established, this would completely ABSOLVE him from his original loan on our house. He REFUSES TO EXECUTE THE QUIT CLAIM DEED "PRIOR TO US GETTING THE LOAN" How?????????

The Bank fully approved us, but said that they cannot pull Escrow papers or proceed any further WITHOUT THE EXECUTION OF THE QUIT CLAIM DEED SIGNED, NOTARIZED AND RECORDED WITH CLARK COUNTY RECORDER'S OFFICE.

The Bank has given him (2) OPTIONS that seem agreeable to everyone but HIM!

OPTION (1) Add my name to the Title during the Escrow and the completion of my ALREADY APPROVED LOAN. His name on Title falls, his Mortgage is then PAID OFF which then ABSOLVES HIM FROM ANYMORE RESPONSIBILITY.

OPTION (2) Execute the Quit Claim in order to complete our Refinance on our Adjustable loan so that the Bank and the Escrow Dept. can move forward.k

My step-son REFUSES both options! Now what?

We've called so many Lenders and Escrow Depts and they all say that they cannot move on this if he REFUSES either option. They said that no Lender or Escrow Dept. can LEGALLY ADVANCE OUR LOAN. The Bank and Escrow Dept. would be held to a lawsuit?

Please advise. Thank you

My husband and I were very concerned about having a written memo from my step-son, so therefore, we requested this of him. What would happen if he were in a car accident or took ill, so we requested this memo from him which states that: "We are the rightful owners and that we are responsible for this mortgage".

It's apparent that my husband's son is looking for a "big pay-off" - since he's refusing to agree to either one of the Bank's options. Through an attorney he has just retained, their legal answer to our complaint is: He intends to ask the Judge to "evict" us as we are trespassing on HIS property?? Oh, we have been squatting on our property for (9) yrs. It's apparent that he has perhaps forgotten that he wrote this memo to us years ago as we never fully trusted him... and this is the very reason why. We have family members who will testify on our behalf. But, the bottom line is that his attorney wants to settle "out of court" - I wonder why?? It will cost a lot of $$$$ especially when you don't have receipts, documents, etc. as we have. We actually pay in person.

Just curious: What kind of home is this? Condo? Free-standing? And, whose name is on the deed as "grantee" or "owner"? And, whose name is on the mortgage? Finally, who signed the promissory note?

Yes, like I said, that memo has bearing in any attempts on his part to evict you from the property. Did he pay anything towards the property? Armed with that memo and receipts for all the payments, he will not be able to evict you. Most likely the court will order him to sign over the property to you. But you WILL have to go to court. Only a court order can force him to sign over the property.

So you have to weigh whether the costs of hiring an attorney and going to court are worth your while. If you add up what it might cost you to go to court, you could offer him a payment close to that amount as a settlement.

So either he shows up at the loan closing and signs over the property, or you get a court order, ordering him to sign over the property.

Hello d:

I've been watching... waiting for the "ahaaaa" moment... wondering WHY the son is doing what he's doing...

Okee doakee. It took 10 posts, but you finally spilled it. He wants MONEY. K. That's a lot different than doing it for meanness or revenge or something. That stuff is toooooo deep to get through at a time like this...

But, since it's only MONEY, that means it can be negotiated. Ok, then you better get to negotiating...

Yes, you're right. It's YOUR house. YOU made the payments. You're good and pure, and he's a dirty rotten son. You shouldn't HAVE to negotiate. Ok, so what?

HE is on the title. I don't know why he's there. You evidently needed him for something. Did you offer to pay him for that service?? Probably not, or he wouldn't be soooo greedy now.

So, I don't know why you put him on the title, but that's neither here nor there. He IS on the title, so you're going to have to deal with him. Therefore, it's only a matter of the cheapest way out for you.

In my view, that would be to hire a real tough lawyer, hammer out a deal, and move on with your life.

excon