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    MosSyl's Avatar
    MosSyl Posts: 1, Reputation: 1
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    #1

    Jan 5, 2007, 03:34 PM
    Quit claim deed to a corporation
    An officer of a corporation that I am president of wants to use a quit claim deed on a property to help the corporation with an asset for a loan. The property has a reverse mortgage on it. Can the quit claim deed be used without a complete refinance of the property or other complications?
    KMSRyana's Avatar
    KMSRyana Posts: 142, Reputation: 26
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    #2

    Jan 5, 2007, 03:48 PM
    That will vary depending on your state and your lender. You need to start by contacting the current lender and asking if they will allow it. Some will, some will not.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #3

    Jan 5, 2007, 11:23 PM
    A quitclaim deed transfers gives no warranty or promise at all, It actually does not even say the seller has ownership in that property, by strict meaning it merely transfers what ever ownership they happen to have to the other person, it does not make any warranty about liens, or other possible legal issues.

    Now who is the actual legal owner of the property, the mortgage company or the person.

    What are the terms of the loan, would it allow it ?

    I would say that you need to get your attorney invoved to review the situation
    excon's Avatar
    excon Posts: 21,482, Reputation: 2992
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    #4

    Jan 6, 2007, 04:57 AM
    Hello MosSyl:

    The officer of your corporation doesn't own his house anymore. A reverse mortgage is when a bank ALREADY bought the house and is making payments on it. I don't think they'll appreciate their asset being transferred.

    excon
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #5

    Jan 6, 2007, 10:14 AM
    Sorry excon had to spread the rep again

    My confusion was who owed the house, is this corporation the lender who holds the deed, and wants to use the deed for corporation finacing.

    But who the owner is, who the mortgage holder is, who is living in property and this corporations relationship to the two were never fully explained
    excon's Avatar
    excon Posts: 21,482, Reputation: 2992
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    #6

    Jan 7, 2007, 08:18 AM
    Hello again MosSyl:

    I did some more checking. It appears that there are three kinds of reverse mortgages. Contrary to my earlier statement, the house is not "sold", and the title remains in the owner's hands. When the mortgagee expires, the loan must be repaid, or the house will be sold. Even though title remains with the owner, the house is still encumbered.

    My conclusion remains the same although I'm taking a different route to get there. The bank is not going to appreciate the transference of an asset they have an interest in.

    excon
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