Compare Mortgage Quotes

sixftkaz · Joined: 19 Jun 2011 Posts: 2 1.81 Dollars($)

I quitclaimed my property to my friend as security for her to pay the foreclosure fees to stop my then foreclosure. I haven’t paid her back and now she wants to sell my place but the mortgage is in my name – can she do this even if I don’t sign off on the loan? I live in Colorado.
Can she foreclose on the property for default even if no promissory note was written, it was just a verbal agreement. Can she foreclose like the bank did prior and what happens if there is a diffence left to pay on the mortgage?

Cheryl

gmakerley · Posted: Sun Jun 19, 2011 6:28 pm Post subject:

No matter the reason why you relinquished your ownership interest in this property, it has evaporated like the morning dew. The home now belongs to your "friend" - in quotes because it's clearly a contentious friendship now.

As an owner, she cannot foreclose, no; she owns the property - all she has to do is ensure that you're removed from the premises to do what she wishes with the property - sell it, move into it, rent it, keep it vacant for the remainder of days.

Presumably, you've given up all your former rights to the property. Has it occurred to you to seek legal assistance yet? It's possibly not too late.

sixftkaz · Joined: 19 Jun 2011 Posts: 2 1.81 Dollars($)

Thank you Mr. Akerley but one should be careful what we write as we tend to rely on the source. I am the person that now holds the deed that Cheryl signed over as security for the money I paid to stop the foreclosure. I wrote this from her perspective as it was to complicated from my perspective.
Attorneys have been involved and for those that read this response please note that though one holds a quitclaim deed one is not necessarily an owner and can not do as we wish. Yes we hold an interest in the property. Yes if the quitclaim deed is recorded it is official but without a promissory note or other document in this state, CO., or otherwise indicating the terms and conditions of the money lent, you can be SOL.
Case law can construe the process as a loan as security for a debt, possibly, but this allows in law a mortgage and allows for a foreclosure sale in satisfaction of a debt. Also in some instances evidenced by case law Colorado courts have held that the conveyance of a quitclaim deed as a part of a debt arrangement can convey an immediate transfer of all ownership rights by, and that no mortgage security was intended. I strongly suggest one obtain a legal representative as it is not a cut and dry situation when you are quitclaimed a property without a written contract with stipulated terms and conditions of intent of repayment.

gmakerley · Posted: Sun Jun 19, 2011 8:07 pm Post subject:

Careful what we write? You're the recipient of the quit claim deed, masquerading as the grantor? Why oh why would I rely on the source of that original post if you're not the person you claim to be? Oh what a tangled web!

I'm curious to know why, as the (presumed) sole owner of a piece of property (obtained via quit claim deed), one would need to demonstrate some sort of debt in order to pass muster with the state. I ask because many times there is no debt incurred in the provision of a quit claim deed - it's merely a transfer of ownership from one party to another, usually for some sort of consideration but not necessarily so.

So was this some sort of test you were administering? You're citing case law about this, about that, etc. and finally recommending legal counsel - something I routinely consider de rigueur.

Gotcha?!?!

jheard · Posted: Mon Jun 20, 2011 11:40 am Post subject:

I agree with qmarkerley. Based on the facts you gave, a property transfer was completed. There was no security interest to foreclose on. The general rule is that once you quitclaim a property to someone, they own it, regardless of any debt. A quitclaim deed is not a security interest.

Of course, local and state laws may vary. Also, there may be other facts surrounding the transfer that may affect this determination. In certain circumstances, a quitclaim deed may be considered a security interest. That's why I always say to check with a local attorney who can get all the relevant facts and apply relevant law. Since you already have an attorney, there is no use asking questions on this forum. This forum has limited use and is for general questions and information, not legal advice. Read my disclaimer.

Posted: Mon Jun 20, 2011 3:43 pm Post subject:

Yes this forum is for general use and yes what should be written is as you mentioned, local and state laws vary and this should always be given with a response. No this was not a test - it is a very complicated situation and to write as I mentioned my perspective would have been too confusing. I read every post and if folks were to consider what was written without further obtaining legal counsil one could end up as I did -fighting an uphill battle with thousands of dollars out of pocket relying on information though general and I beleive folks do rely on this and move forward from the advise given. What started as a simple loan to a friend to bail her our of foreclosure has esculated to over 30K out of pocket trying to continue to protect my interest in a quitclaim deed as the mortgage holder, occupant, seems to have too many legal rights even when someone else possess' the quitcliam deed to the property. The intention was not to upset your ego gmakerley just to have forum members realize what is written is very vague and one should always seek legal advise or always put things in writing if you intend to loan money to stop a foreclosure and the security interest in the quitcliam deed and yes it can be security interest according to case law as was written. Bottom line hopefully someone will beneift from this info.

Posted: Mon Jun 20, 2011 3:56 pm Post subject:

I still am looking for answers that could no longer be obtained from legal counsil for lack of any more funds to pay legal counsil and still no final resolution obtained as the legal research clearly indicates a judge will have to hear the evidence and then decided whether I will be able to construe this as 'security for a debt" and thus be given permision to file for foreclosure which has been quoted as another 15-30K in fees. This is why I have written in this forum - no one should have to go through this and if this is the way to help top just one other person it is well worth paying it forward.

gmakerley · Posted: Mon Jun 20, 2011 8:13 pm Post subject:

Two things jump into my mind, Guest.

First, my ego isn't even bruised, let alone upset.

Second, I just read an email from an 81-year old man who suffered during World War II, having to hide for two years from the Nazis. He said this in the email: "A sense of humor has allowed me to reach 81 without ever getting bitter."

Let me tell you - the man made me smile, gave me a wonderful treat to take to bed with me shortly (it's 11:39 PM here); and I have no qualms about posting yet another answer to your posts.

I thoroughly agree with your stance that your having brought the situation to the forum so that perhaps someone else will benefit from a lesson learned is a valuable thing to do.

As I noted earlier, I am regularly recommending that someone obtain a legal opinion at the least, whether it's for a purchase, a rental situation, the lending of money...all this and more.

We here are not legal experts, other than a few here and there like Brother Heard up above. For someone to blindly take the words of a layman written in haste on a forum would be a shame, and there always ought to be some review by an attorney for legal matters.

I understand, as well, that legal fees mount up and at some point become onerous. Allowing a judge to review both sides of the story and to adjudicate thereon is undoubtedly where you need to be at now.

Compare Mortgage Quotes

quitclaim deed can she foreclose on me

Helpful References

Our Community

Community Rewards

Property State:
Property Type:
Credit Rating:

Company	Loan Type	APR	Est. Pmt.
				Go
				Go
				Go
				Go
				Go
				Go

All times are GMT - 7 Hours

Page 1 of 1