I prepared the Quit Claim, Mortgage Note, and Statutory Mortgage Deed, now who gets what?

Question

In my divorce, I've agreed to let my ex keep the house for a few more years without paying me my share of the equity until the date I specified. (4 years) I have the note stating I'll get 1/2 the equity in the home (as reflected in the most recent appraisal-which was quite good - it was done last year!) plus 4% interest or 1/2 the equity in the home at the time of sale or refinance.

What do I do now? I know the town gets the quit claim. I'm thinking the note and statutory deed goes to the mortgage company. Am I missing anything else?????

The note says 1/2 the equity at the time of sale or the amount from the recent appraisal + 4% whichever is greater. I come out good either way. So, everything gets recorded with the town? What does a title insurance company do?

Answer 1

There are a lot of important questions being posted on this board that really need the advice of a real estate attorney. My quick take on it (and I am NOT an attorney) is over your Quit Claim Deed (QCD). If you record that at the county seat then you are forever quiting your interest in that property. Four years later, when you come to collect your share... well you won't have a share because you no longer hold an interest in the property. Hopefully, your divorce agreement is in writing.

Best of luck.

Answer 2

You have a few major problems here.

First off, double check with your state.... but in my state you use the promissory note & deed of trust and not a 'statutory mortgage deed." So if you call a title company an dhtey confirm your route... then just ignore what i'm saying. .

In my state, your case would be handled like this:

1) prepare a promissory note according to legal standards, and have it signed and notorized. This woud include a time limit for payment due, interest rate, etc.

2) Prepare a deed of trust that relates to the promissory note. What you WANT and NEED is a lien placed on the house that shows YOU in second lien holder position after your husbands standard mortgage. You really need this in order to guarentee that you'll get your money. If he dies, defaults, etc, you would be left in the dust if you dont have this recorded.

3) quit claim your interest in the property to him, and have both the quit claim and deed of trust recorded on the same day.


If you supply all the information (names, conditions, rates, etc.) a title company prepares all the docs for you and gets them recorded. They are also notaries so they can notarize the neccessary paperwork.


ALSO, FYI, I would be VERY VERY careful if you plan to say that he has the option of paying you "1/2 the equity in the house at the time of sale"--- EQUITY is just the difference betwen what he owes and what it sells for. If he refinances or gets a home equity line, this effectively LOWERS his equity.



ALSO, FYI< the deed gets recorded in the county, and the deed of trust gets recorded and you or he keeps the recorded copy. The promissory note is generally just signed and notorized and yo uboth keep copies. Your mortgage company is a SEPERATE LIEN HOLDER and does not care what the hell you do with the rest of the property-- they're in first position and they collect first if he defaults. You are becoming a mortgage company, basically, in this scenario.

Answer 3

Yeah, you're forgetting to take your lawyer's advice. Hint: The quitclaim deed doesn't go to the town! And the note and mortgage deed don't go to the current lender!