Real Estate Question...need help quick

Discussion in 'Budget Board' started by dfchelbay, Mar 8, 2011.

  1. dfchelbay

    dfchelbay DIS Veteran

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    If I signed a quit Claim deed on a house years ago to a family member, then rescinded it, two years later because of not being paid, am I still financially responsible for that house? We are not on any mortgage to that home. I say we have no financial obligation. DH thinks we may. The house is in preforeclosure and a woman from a title company is leaving threatening messages that we are still financially responsible for that house.

    Any thoughts and help are appreciated.
     
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  3. tlbwriter

    tlbwriter Does this look infected?

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    Your obligation is based on whether or not you are on the deed. Not having a mortgage is irrelevant.
     
  4. Cheshire Figment

    Cheshire Figment <font color=red><marquee behavior=alternate>Friend

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    Find out from your city or county how is the property titled.

    Also, if you are not on a mortgage you have to personal liability to a lender.l

    If the property is mortgaged and the lender forecloses, if it is sold for more than the amount of the mortgage balance, and you are on the title, then you are entitled to anything money received above the mortgage amount.

    But, again, if you are not on the mortgage you have no legal responsibility to the lender.
     
  5. tlbwriter

    tlbwriter Does this look infected?

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    Wait... is the title company saying you're responsible for the mortgage, or for some other lien on the house? If they're saying you're on the mortgage, ask them for proof.
     
  6. dfchelbay

    dfchelbay DIS Veteran

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    Was on the original deed, quit claimed in 2002, for payments to be made. Payments were not made, so the quit claim was rescinded in 2004. Now, this family member is attempting to short sale to avoid foreclosure. We are now being asked to sign a quit claim, and being told we are still responsible for the property financially.
     
  7. Cheshire Figment

    Cheshire Figment <font color=red><marquee behavior=alternate>Friend

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    1. Do not sign or agree to ANYTHING!

    2. Find out, through the County Clerk Office, exactly how the property is titled

    3. Ask them to provide written proof that you are liable for anything.

    4. Tell them that any contact must be in writing and not by telephone.

    5. If you send them any correspondence, do not actually sign your name with your signature. Just print your name or just sign your initials.

    6. Don't agree to anything until they can provide you with written proof.
     
  8. tlbwriter

    tlbwriter Does this look infected?

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    Well, I'm not entirely sure you're off the hook. Would rescinding the quit claim simply undo it, like annulling a marriage? If so, if you would have been responsible before the quit claim, it seems you would have been responsible after it was rescinded. You might need an attorney.
     
  9. Darcy03231

    Darcy03231 DIS Veteran

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    If you are on the deed the only financial responsibility you have would be the real estate taxes to the town. If you aren't on the mortgage, you have no financial responsiblity to the mortgage company. I would make sure, however, that you have some type of liability insurance on the property. You can be held financially liable as a property owner should there be an accident on the property.

    If the mortgage company is trying to tell you that you are financially responsible for the mortage tell them you want to see the proof.

    What they might be trying to tell you is that the taxes are unpaid and as an owner you have some financial responsiblity for those fees.
     
  10. dfchelbay

    dfchelbay DIS Veteran

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    Will do. I'll find out from the register of deeds office today. If we were on the deed to the property, I do not believe she would have been able to take out the mortgage she did, in fact, take out in January 2008. We would have been notified at that point to sign papers, which we were not.
     
  11. eolian

    eolian Earning My Ears

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    so if I understand then you are in title of said premises.

    In order for the property to be sold they (the buyer/bank/title company) will need you to sign off on the premises (by a quit claim deed usually).

    I work in a real estate law office and I am just a secretary, but honestly this is something that could be complicated. Don't rely on the advice here other than this:

    Call an attorney who specializes in real estate and title issues and get some expert advice. The one that drew up the Quit Claim Deed and rescinded it would probably be a good starting place.

    Yes, it might cost a little bit, but honestly I wouldn't mess around with this by myself.
     
  12. dfchelbay

    dfchelbay DIS Veteran

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    OP here - just talked to the Register of Deeds office and we are not on the deed. So, as it stands now, we are NOT on the deed, mortgage or taxes.

    So, any thoughts or comments???
     
  13. tlbwriter

    tlbwriter Does this look infected?

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    Ask the title company to provide proof of what you owe. Maybe they're working from old information.
     
  14. PigletsPal2

    PigletsPal2 Queen of the Realm

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    What do you mean "just a secretary"? Secretaries and admin assistants keep the business world running! Rock on!

    Queen Colleen
     
  15. cglaura

    cglaura DIS Veteran

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    I'm not sure I quite follow...is this right?

    You were on the original deed. Just you or you & the family member?

    You quit claimed to them (or just them...removing yourself) in 2002.

    No payments made so you rescinded in 2004.

    Or was it you that didn't make the payments so they rescinded?

    If it was you that rescinded wouldn't that then make it back to your name? In which case your name would be on the title and they need to get you off of it to sell (like pp stated).

    Either way, I'd definitely consult a professional about it.
     
  16. Swimalie

    Swimalie DIS Veteran

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    Sounds like you need to write the woman from the title company with a copy of the deed from the Clerk's office showing that you are not on the deed currently and there fore now responsible for the property now.
     
  17. eolian

    eolian Earning My Ears

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    Just because you are not on the deed doesn't mean that you have been taken off the title properly. The title company's job is to make sure that the new owner is given clear title. My office has in the past asked for quit claim deeds just to confirm that indeed a past owner has no claim to the property.

    Have you discussed this with the title company or have they just left you messages? If you haven't, give them a call and see if they can explain things to you. They are not a collection agency and I wouldn't be afraid to call them and get further info. If you have any questions at all don't sign anything and get an attorney's opinion first.
     
  18. dfchelbay

    dfchelbay DIS Veteran

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    We did talk to the title company this morning. She could answer no questions. Every question we asked was met with I'll have to check and let you know. Apparently, this title company is working with the real estate agent to try to short sale the property. I don't even know that this title company has anything to do with an actual sale, pending sale, already sold, etc. I looked them up online and they are a company that assists homeowners in short selling their home. So, we are just sitting here doing nothing at the moment.
     
  19. starry_solo

    starry_solo DIS Veteran

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    1. This is a confusing situation. Usually you cannot rescind a deed regardless of the circumstances. The grantee [person who got title] can usually file something with the recorder's office refusing to accept it, in which case it would revert to the grantor. Regardless, unless you signed the documents for the mortgage or any loan to be secured against the property, it doesn't seem like you would be responsible for anything other than taxes.

    2. I also wouldn't trust what the county recorder's office says. They only tell you what is in their computer system (which is set up by humans so there's a possibility for error). The reason I know this is because a friend used to work at the recorder's office. A lot book report was pulled up because the County showed one person owning it (since the 1990s), but according to the title company, it's owned by the individual who owned it since the 1960s (because the trustee's deed upon sale from the 1990s falls outside of the chain of title).

    3. Make an appointment with the title company and ask them to show you the documentation they have showing you own the property.

    4. Make an appointment with an attorney (in case what they show you ends up making you owe money).
     

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