if I own a property - deeded to me through quit claim, does the seller who pays the mortgage have any rights?

Question

actually, this question is really for a friend - but suppose she owns the property via quit claim, and the seller had financed the original purchase via mortgage, and continues to get equity loans and refinancing on the property through the mortgage company - does this allow him any rights re: the property - my friend wants to sell the property to her daughter - what rights does this first seller, who obtained financing and is still listed on the mortgage company records, have with respect to preventing the sale or getting money back after said sale?

Answer 1

The bank (lender has a lien on the title which is called a cloud) if the purchaser (daughter) is going to get financing to purchase the home then she will need clear title (the mortgage will have to be paid first (this is actually done during the purchasing process).

The person who pays the mortgage cannot prevent this and unless they have a lien on the property themselves has no right to money from the sale. But that person could stop making mortgage payments and (unless your friend begins making payments) the bank (lender) will foreclose on the house and your friend will not have a house either.

This really sounds like your friend is trying to get over on someone and that's not right. It's also going to get very ugly and they will most likely all lose (your friend will lose the house and the person who got the financing for her will lose his good credit standing). Your friend should get the home refinanced herself since it is in her name only now. It is much easier to qualify for refinancing than for purchasing and can be done with no money down if there is enough equity in the home.

Answer 2

They are playing way out of their league!!
Anyone can give you a "quit claim deed", they don't even have to own the property!!
you don't pay off a "deed", you pay off a mortgage.

Your friend doesn't "own" the property "via quit claim"

How can your friend sell something that she doesn't own ?
Wanna be silly ? Just give her daughter a "quit claim deed"!! It's not the right way...!!

Get a GRANT DEED and get it notarized and recorded. The original seller with the mortgage will not be able to refi it.
The lender could call the loan and everyone will be screwed.

Many people are trying to play real estate by themselves without the correct legal help. Don't be stupid, you can lose EVERYTHING.

Answer 3

I just paid off my quit claim deed..mortgage to my leinholder.
What a quit claim is, is the seller has the right to take back possesion of the property only if the buyer has not met all financial obligations pertaining to the contract of purchase. If she has been making all payments, there is not much he can do about that..although, he still has a mortage with a bank on it and he is borrowing the equity from the property?? He really cant be doing this, I dont think, he has sold it to her and she is paying for it, in essence he is borrowing from the bank, the money she is paying towards it. She had better find out what bank the lein is with, as well as the go to the county and ask them about it, they should have all the info in the deed book as to whos name is recorded in the deed book. I am not sure what he is doing is legal. But I do know this, if she pays the balance, he has to pay of the bank and furnish her with the ownership. She does not own it until the bank is paid in full, and she has a letter from him stating her financial end has been met to transfer it with the county. Then she will get a warranty deed from the county which means it is hers free and clear from debt. By the way to awnser if she can sell it to her daughter...she cant sell what she doesnt own yet, the bank has to be paid in full before anyone can transfer anything, as it stands right now, he doesnt even own it, the bank does until he pays it off. If she wanted to sell it to her daughter , they would have to pay off the quit claim, or the bank, which i would look into first...then he has to transfer it to either her or her daughter, whoever is going to buy it. but anyway the bank must be paid or no one gets it. Hope this helps a little
Like I said earlier, look it up in the deed book, at the county office...if her name is in the book with a QC next to it it means that the seller had it recorded in the county records. If it is not there, he is not doing it the legal way..look up what a quit claim means it is not ownership and when she does pay it off, she should get a satisfaction of mortgage ..it is a legal form filled out by the seller as well as noterized, which is then given by the purchaser to the county office along with the warranty deed with is done the same by the seller...give it to the county office they only accept originals, they copy and enter and record in the books, and return your originals back to you , for you to keep. Then and ONLY then is the property yours,,or hers...whomever is buying it.

Answer 4

The best answer to your question is to consult with an attorney that specializes in Real Estate transactions.

What a Quit Claim does, varies from state to state. In my state, you cannot use it to transfer ownership and it is only legally used to correct an error on a previous deed, and is also nicknamed "correction deed".

This is also true for many states around me, and that is why an opinion of a Real Estate attorney is needed.

What I can tell you for certain, is ownership through a Quit Claim deed offers the LEAST amount of guarantees and not nearly as iron-clad as General Warranty or Special Warranty deeds.

I can also tell you that only fly-by-night lending institutions will loan on a property, whose owner does not own the home by a General or Special Warranty deed, and can also send up a red flag to a buyer should your friend ever decide to sell...and could possibly make the property unmarketable.

Answer 5

First... you have got owned the valuables temporarily, however the guy who signed it over to you probably did you no favors in doing so. you would be nicely recommended to income your credit report suitable now. the priority is that liens are placed on property for loans which comprise mortgages. In signing the valuables over to you, this "person" made you to blame for that debt. the probability is slender you could ever get it decrease back, in spite of the undeniable fact which you ought to to touch an criminal expert besides; there's a extra constructive probability which you will sue the guy who gave you the valuables on a end-declare than there is in getting the valuables decrease back without a protracted criminal conflict. observe: i'm no longer an criminal expert, yet something comparable to this occurred to me besides.