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dameror · Apr 4, 2007, 01:12 PM

Last year my wife and I did a quit claim deed on property in Georgia to in order keep it out of foreclosure. The person who deeded the house to has yet to obtain their own financing. Although they are paying the mortgage in a timely manner, it still affects our debt to income ratio therefore we are trying to accomplish two things; one get them to obtain their own financing or two, quit claim the house back to us. The latter will be difficult. I should also mention that he house is not being occupied. Strange, eh? Any advice will be appreciated :cool:

ScottGem · Apr 4, 2007, 01:14 PM

What was signed when you registered the deed to them? There had to be something.

Fr_Chuck · Apr 4, 2007, 01:37 PM

It is very possible that you are in more seroius trouble than you realise, first almost all mortages have a clause in them ( esp in the US) that you can not deed the property to someone else without their permission.

So it is very possible that if your mortgage company finds out it was deeded to someone else, the entire debt would become payable.

All they are doing to "keep you out of foreclosure" is paying the monthly bill, the trafsfer of deed had no bearing on this, since they stll have a lien on the property. To do a legal deed over the mortgage would have had to be released and a new deed and mortgage established.

So you have some seroius legal issues on this, So what has happened, in signing over a quit claim deed is that you gave over your part of the ownership, but still owe the full amount of the mortgage,

You need to talk to them and get this fixed, if not you need an attorney to deal with it.

dameror · Apr 10, 2007, 06:46 AM

All that was signed was the quit claim deed form for the state of Georgia. So if there is a clause in the mortgage that states that the bank should be notified, and they were, will they still call the loan and attempt to secure the property? As I mentioned, no one is living in the property therefore we would like to get it back.

ScottGem · Apr 10, 2007, 07:08 AM

If the bank was notified and did not object to the transfer then they can't call the loan. But if they were not notified, that can.

Bottom line, is you have no agreement with them. They have a deed showing they own the property. Now you might be able to void that deed on the grounds that it was improperly executed since the mortgage was not paid off or assumed.

dameror · Apr 30, 2007, 07:53 AM

The security deed states that we must notify the bank in writing which we did not do. The new deed holders were calling to bank pretending to be my wife. They were unsuccessful and requested that we give them our SSN and DOB in order to refinance the mortgage in their names. We did not. To make matters worse, we were notified by the bank that the property tax was not paid. The bank is going to increase the loan to until they've recouped the tax payment.

Who would determine if the quit claim was improperly executed, the bank or a judge?

ScottGem · Apr 30, 2007, 08:06 AM

A judge would have to make that determination.

Is your bank still unaware that you sold the property? Before you transferred the property, weren't you paying an escrow amount to cover taxes and insurance? Or were you taking care of those yourself?

The bank was probably informed, as lienholder, that the taxes were unpaid. So to protect their interest, they paid the taxes and added the amount to your mortgage.

So you REALLY need to get this straingthtened right away.