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Good day;

Briefly... I have been out of work for 13 months. A NYS Supreme Court recently issued my divorce decree that included a property settlement. In the equitable distribution settlement the Ex wife is to receive the house (by Quit claim deed or Sheriffs sale).

Neither she nor I live in the home. I have a Home Equity Line on the home (in my name only) - which had been used for property improvements including new roofs etc). I have not serviced this note in 7 months. Lender has begun foreclosure and referred the matter to a legal firm.

Recently I received a large package (from Ex's Attorney) - With a QQD and several other forms (State Property Transfer Form & State Real Property Transfer Tax Return Form)

All forms were prepared - without any mention of an existing mortgage on the property (as if it did not exist). Boxes on forms were checked off that indicate - No mortgage exists on the property.

I cannot sign these because a mortage exists on the property. Both the Ex & her lawyer were aware of the property mortgage and gave Q & A testimony "under oath" and recorded on court transcript - both affirming knowledge of a mortgage on the property. Clearly they are on record as acknowledging a mortage existed on the property.

Clearly they are trying to pull a fast one by supplying documents for signing - that fail to properly state a mortgage exists on the property.

Certification language on the forms state " I certify that all of the information entered on the form is true and correct (to the best of my knowledge) and I understand that making any willful false statement of material facts herein will subject me to provisions of the penal law for the making and filing of false instruments"

For this reason, I cant sign the forms. Clearly Ex & her lawyer are trying to facilitate this transfer in a way that ignores established knowledge about the property. Transfering title and removing the rights of recover to the property from the lender.

Please give me some "Suggestions" for how I should handle this. I am not going to sign documents that mischaracterize the property debt status.

I have considered contacting the lenders & their legal firm directly- providing opies of the requested forms - for their review and possible action.

Any suggestions ???

Thank you for considering this question

jenkin7 · Posted: Fri Oct 23, 2009 11:49 pm Post subject:

Hi Guest,

If there exists a mortgage debt on the property, it should have been mentioned somewhere in the forms. There is no point in hiding the facts. However, as the court had ordered the property to be given to your ex, you need to sign the quitclaim deed and sign it over to her. If you do not do so, you could be in contempt of court. I think you should discuss this matter with your ex and her lawyer.

I am not sure why she wants to have the property in her name while the property is in foreclosure. Even if she gets the ownership of the property, the house could still be foreclosed by the lender. Does she want to take over the responsibility of the mortgage debt as well? In that case, she will have to talk with the lender because if you quitclaim the property, it will not take your name off the mortgage. You will still be responsible for the loan, until it is paid off or she takes over the liability of the debt.

manoj_gopale · Joined: 16 Feb 2009 Posts: 488 0.00 Dollars($)

Hi guest,
It is true and straight way advisable not to sign the documents bu at the same time it is also true that person can not ignore the other duties of court verdict.

Ask your ex's lawyer to prepare a new fesh documents clearly stating the existing mortgage in the form and thus it can be signed by you and matter could be sorted out without any further delay on your part.

keep in touch....

Guest

Thank you for your advice, in this matter. I think I will consider returning documents to her lawyer advising him to correct the omissions on his document package.

I do not have my HEL package in front of me, but I expect that their may be provisions in that debt agreement that prohibit me from conveying a quitclaim deed. Very likely signing a corrected quitclaim deed form may put me in double jeopardy for violating language in my debt agreement.

Would there a serious exposure for me - if the debt documents contained language that forbid the conveyence by quitclaim, or would that exposure be mitigated by court order stating that the property must be transferred ?

Alternatively, I may mark up the documents with corrections of material facts & sign the corrections and return the documents to the lawyer. This will serve to meet my requirements. It also ensures that if the parties desire to proceed on this set of documents - that material facts are corrected prior to signing the documents in good faith.

I still believe notifying the original lender - about this circumstance would be the correct thing to do, in consideration that they have a vested interest in the property.

Perhaps Experts in the Forum - may be holding a belief that Notifying the lender shouldnt be needed - if the forms involved are correctly filled out with all information... Please consider commenting on this aspect of who I should notify.

Thanks again for your assistance on this topic.

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Divorce Distribution on a home in Foreclosure