[WeisseNacht]

Details... Eh, pretty much the bank is telling my friends Mother-in-law that she could possibly be sent to jail if she gives my friend the deed. They've even offered to give a form of compensation for the deed but the bank still insists that her Mother-in-law could be sent to jail. If you need more details, feel free to ask.

Can you be sent to jail by the bank if you attempt to give someone the deed to a house you already own?

[ballengerb1]

A bank can not send anyone to jail but a judge could. Does she have a mortgage on this home?

[excon]

Can you be sent to jail by the bank if you attempt to give someone the deed to a house you already own?

Hello W:

The problem she has is that she doesn't "own" the house, as you suggest. If she DID, the bank couldn't touch her... But, the BANK owns the house, and if the lady is trying to avoid foreclosure or paying her mortgage by fraudulently transferring ownership, the bank will INDEED file criminal charges.

excon

[ivanh]

The states attourney will come after you as well. It's called fraud. The Bank will get their house however, because the house is legal collateral for her mortgage. And its still her mortgage even if the deed is transferred!

[ballengerb1]

I am not sure on this but think you do not have your deed when you have a mortgage. The bank holds it and has its name on it too.

[ivanh]

She own's the house with all rights, but the problem is the house is legal collateral for the loan, and that cannot be sold unless the Bank approves(which they won't). They can "Call" the loan however.

[Fr_Chuck]

She can give the house to someone, as long as they refi the loan or the bank allows them to assume the loan,

To "give" there has to be a closing and a transfer of deed, to do this, the liens on that property has to be paid or assumed.

[ivanh]

A mortgage is simply a special case of a loan where the house is used as collateral for the loan. So anyone can transfer a deed to anyone via Quit Claim but the catch is, the Bank will call the loan. So when the mortgagee fails to come up with the coin for the house the Bank can take the house "NO MATTER WHO HAS THE DEED" ! So the new deed holder looses the house because the Banks paper supercedes the property transfer, leaving the suspect property tranfer fraudulent. Simply put, several realestate laws have been broken. Expect to find a nice tight spot under the jail house for that one. Massive paper trail too! There is no escaping or explaining. You would have a better chance robbing a bank after advertising you were going to rob it!

[LisaB4657]

I am not sure on this but think you do not have your deed when you have a mortgage. The bank holds it and has its name on it too.

Ballenger, some states use a form called a Deed of Trust where the bank is the "owner" until the loan is paid off. In other states the Deed remains in the owner's name and the bank just gets a mortgage.

[AK lawyer]

Ballenger, some states use a form called a Deed of Trust where the bank is the "owner" until the loan is paid off. In other states the Deed remains in the owner's name and the bank just gets a mortgage.

Closest to correct so far. But strictly speaking, a DOT gives the trustee the right to sell the property if the note isn't paid according to it's terms. The benecificary of the DOT is the bank. The Trustor (person who is living in the house and paying the note) is still the "owner", subject to the DOT.

Same with a mortgage. The "owner" has the right to use the property, subject to the terms of the note, as secured by the mortgage.

But with respect to the main question in this thread, I fail to understand exactly what the "owner" would be trying to accomplish by conveying the property to a third person. The bank would still foreclose if not paid. The bank wouldn't be confused for a second. So how can it be a crime (fraud) if no one is fooled?

[ScottGem]

Note: ANY question on law needs top include your general locale as laws vary by area.

While I find it unlikely that anyone could be subject to criminal prosecution over this situation, because the reason for transferring the property has not been explained, we really don't know enough details.

Another point on terms, one doesn't give a deed. One DEEDS a property. To transfer ownership of a property, one has to execute a deed transferring ownership.

[ivanh]

That's right. Realestate class 101.

[ivanh]

What about the guy holding da deed. Hopping mad I'd say.