The couple is divorced. Both own the house.He went & took out a mortgage on the house for about 75% of its worth without her consent.He spent all the money.Is there any way that she can protect herself from being liable if he defaults on paying out the loan? And is there something that he could sign that will remove his authority over making any further financial decisions on the house?
2007-01-31 07:59:51 · 4 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
As always, consult an attorney over such an important matter.
If they divorced while they were in the house, then typically one party issues a QCD to the other party. If that didn't happen then the waters could get muddy (or the title cloudy, if you like). But probably not. Did he use her name in conjunction with his when obtaining this loan? If not, it is unlikely that she will be responsible for the debt. But that isn't the real problem. The house has been used as collateral for that lien and now she will be deprived of the equity for future use until that loan is paid off.
As far as the last question. It is a matter of the divorce agreement. Again, consult an attorney.
Best of luck
2007-01-31 08:26:55 · answer #1 · answered by David 3 · 2⤊ 0⤋
Your story doesn't make any sense. How would "you" transfer it to "your" name? Do you actually mean that your brother conveyed the property to you with a quitclaim deed? That would be the only thing that would make sense. Anyway, it is up to the grantor (i.e. seller) to sign the deed, and to choose whether to use a warranty or quitclaim deed. Personally, I would not give someone a warranty deed unless I was receiving some cash in return. Edit: A quitclaim is just as valid as a warranty deed. The difference between the two is that a quitclaim means that you are buying the property "as-is." (These should be called "as-is" deeds.) On the other hand, a warranty deed carries various warranties, most important being warranties that the property is free of encumbrances, and that seller has good title. So, let's use your situation. You have the property. But six months from now you find out that there is an easement that runs through your backyard. You would not be able to sue the seller because you acquired the property "as is" with the quitclaim. The seller gave you no warranties. But if the seller gave you a warranty deed with a warranty against encumbrances, you can sue the seller for breach of warranty. That's why if I am giving away a piece of property, I would not use anything but a quitclaim. Why would I want to grant a warranty to someone who isn't even giving me any money in return?
2016-05-23 23:33:43 · answer #2 · answered by ? 4 · 0⤊ 0⤋
When the loan was gotten on the property did she sign the mortgage loan docs? That is the key to find out if she signed the loan docs or did someone sign for her.
That would be unlikely since they you have to do so in front of a notary with a verifiable ID card with your picture on it as well as your signature.
She can call the mortgage company, find out if someone signed her name, or did he sign alone. If he signed alone she has no liability at all. I can not think of a lender that closed a loan with her name on the title would allow him to sign alone.
Did she sign a quit claim deed in the past taking her name off the title of the house? If she did this he would not need her to sign the loan docs as he now own the house as a divorced man.
She should check a title company, or go to the county recorder's office to see if her name is still on the property. If her name for some reason has been removed she should take her divorced decree to a the county recorder's office and inquire as to how she can now get her name back on the title and or file a lien a against the property.
If that does not work, she should contact the divorce attorney that handled her case. He will charge since this is a new legal matter.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2007-01-31 08:24:28 · answer #3 · answered by Skip 6 · 2⤊ 0⤋
IF they still both own it, then he cannot legally get a loan without her signature. So, IF this really happened, then some people need to go to prison - fraud was committed. Talk to the states attorney general, or the FBI or both. The FBI is looking for mortgage fraud, and this sounds like it.
2007-01-31 12:16:02 · answer #4 · answered by teran_realtor 7 · 0⤊ 0⤋