Posted: Tue Oct 21, 2008 2:15 pm Post subject: Is "Quit Claim" a viable legal alternative to a &q
My wife and I sold property to another couple who have decided they can no longer make payments (has nothing to do with mortgage terms, etc). They are three months behind and owe over $3000 in taxes. If they are willing, could we use a quit claim to revert the property back to me and my wife? I understand that we would be responsible for the taxes (if we can't convince the other couple to take care of them immediately) and that we should not expect the back three payments. We live in Wyoming.
If the payments have nothing to do with mortgage, then I think they will be able to do a quitclaim in your name. However, you will then have to pay the taxes or any other dues in relation to the house.
Posted: Thu Oct 23, 2008 7:17 am Post subject: Quit Claim
Sussane,
Am not sure what you mean "if payments have nothing to do with mortgage", but we have both a mortgage and a promissory note. Does that mean the payments are "separate"? We do understand that taxes fall back to us. Only property, so no "improvements" have been done.
If the mortgage is in your name while the property is in another party's name, then quitclaim is possible. You will have to ask the other party to sign a quitclaim deed in your favor.
my assumption, based on the original post, is that you sold the house and the buying couple went out and got a mortgage for themselves. now, they find that they cannot pay that mortgage nor the real estate taxes on the property.
based on the assumption being correct, your taking back of the property via quit claim deed will not eliminate the need for the mortgage to be satisfied. clearly, no lender care where the money comes from for payments due, but there is also no lender who will honor your claim to ownership. once a promissory note is signed by a borrower, the lender is due its money - in full - as soon as the property is transferred.
you'd need to go out to get a new mortgage of your own if this all takes place. as for the taxes - i suspect the tax collector doesn't care where the money comes from either. _________________ George M. Akerley
Loan Consultant
860-221-5044
Steve Baribeau Guest
Posted: Sat Oct 25, 2008 12:48 pm Post subject: Quit Claim?
Actually we sold 18 acres to the couple from an original acreage purchase of 38 acres. We have a separate mortgage for the original land purchase with a local bank. We financed the 18 acre sale to the couple for three years at 7% with a balloon due in Oct 2009 for the balance. The original intent was for them to secure their own financing at the end of three years. Once paid off, our intent was to pay off our own bank loan. We mutually executed a mortgage and promissary note prepared by a local title company for the 18 acre sale. The deed is currently in the couples name (as are current tax obligations, but fully understand we could end up paying the taxes).
inasmuch as you have a mortgage on the property, you are far better protected than i had surmised from your original post. i had taken the impression that the mortgage in question was with an institutional lender, not yourselves.
i think, essentially, what you are describing is a deed in lieu of foreclosure, for all intents and purposes. the alternative to what you are thinking of doing is to begin an action. a quit claim deed is far more benign. _________________ George M. Akerley
Loan Consultant
860-221-5044
Steve Baribeau Guest
Posted: Wed Oct 29, 2008 1:20 pm Post subject: Quitclaim an alternative?
Thanks George. We would prefer, and assume the other party will too, to pursue a deed in lieu of foreclosure. I am now looking specifically at a general or special warranty deed. Seems to fit our situation best.
Steve
FlyinQuad Guest
Posted: Wed May 06, 2009 11:48 am Post subject: Quit Claim/Mortgage
I quit claimed a my home over to a local investor 3 years ago when I fell behind on mortgage payments. The investor paid off my 2nd and then rented the home out, but never assumed the home loan. The loan is still in my name. Now the investor is on hard times and wants me to take the home back, but he wants me to pay him $20,000. How is this legal, since he never assumed the loan in the first place?
s_baribeau
