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-   -   Quit Claim problems (https://www.askmehelpdesk.com/showthread.php?t=84303)

  • Apr 19, 2007, 11:50 AM
    cissy95628
    Quit Claim problems
    My mother signed a quit claim deed on her house following the death of my father. My sister and her husband took possession with the understanding that they would immediately refinance - but until they did so, would make the payments on my mother's mortgage - they also gave my mother money from the sale of their small home, so that my mother thought she was totally "done" with the home. She subsequently bought and now lives in a mobile home. It is now 5 years later, and my sister and brother-in-law have yet to refinance. Most distressingly, my mother called me worried because she received a call from the mortgage company saying my sister and her husband are behind in payments. What should my mother do to keep her good credit? Does she have legal recourse as far as regaining the deed to the home? What if the home should fall into foreclosure?
  • Apr 19, 2007, 12:07 PM
    ScottGem
    Your mom has some big problems here. Most mortgages include a lien on the property. This means the property CANNOT be transferred without the mortgage holder's approval. If they find out about the deed, they could call the loan requiring payment in full. If it isn't paid in full they could foreclose.

    To save your mom, your sis and husband need to obtain financing immediately. Otherwise mom needs to bring the loan up to date or refinance.
  • Apr 19, 2007, 01:05 PM
    Fr_Chuck
    Yes this is a very serious problem, even larger than you know, most mortages have a clause that at the time of any transfer, the mortgage becomes payable in full, so if the mortgage company finds out there is a new deed, they demand payment in full at once and will most likely foreclose on the house, and this means your moms sale was not legal and the "buyers" could actually demand their money back from your mom.

    The "buyers" need to quit claim this back to your mom ASAP and you, your mom or the buyers need to get some money together and pay all the back due payments. At this point, you mom can lease to them, she can sell it on a contract for deed where they pay your mom till it is paid off.

    Or you sis needs to get a new loan today, this week fast.

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