quick claim deed

[shortjenna78]

indiana. my fiancee just purchased a house. because of credit reasons, we left me off of the mortgage aplication. we would like to put my name on as part owner. i have heard of the quick claim deed. what is it and what do we do to get one. is there a time limit on doing this? how much is an avg. cost? thanks

 

[BelizeBreeze]

You can be on the deed even if your not on the loan.

Further proof that you are in deed, a moron

 

[JETX]

You can be on the deed even if your not on the loan.

And of course, that is very likely NOT true. The majority (by far!!) of lenders REQUIRE the mortgage be in the names of ALL listed owners on the title. The reason for that is in the event of foreclosure, they do NOT want to get into a legal challenge as to their right to foreclose on the FULL title.... and/or the requirements to partition a 'jointly owned title'.

 

[Rhubarb297]

And of course, that is very likely NOT true. The majority (by far!!) of lenders REQUIRE the mortgage be in the names of ALL listed owners on the title. The reason for that is in the event of foreclosure, they do NOT want to get into a legal challenge as to their right to foreclose on the FULL title.... and/or the requirements to partition a 'jointly owned title'.

True for the reasons you state. However, after the mortgage is recorded the person on the title can quit claim to others without a problem. At that point, most mortgage companies don't even care.

 

[BelizeBreeze]

True for the reasons you state. However, after the mortgage is recorded the person on the title can quit claim to others without a problem. At that point, most mortgage companies don't even care.

Try again.

 

[seniorjudge]

True for the reasons you state. However, after the mortgage is recorded the person on the title can quit claim to others without a problem. At that point, most mortgage companies don't even care.

jetx, maybe it is different where you live, but such a course of action may trigger a clause in the mortgage/deed of trust stating that the whole amount will be due.

Mortgagees are (or can be) skittish about the real estate they have encumbered being deeded off.

BTW, in Missouri, by statute if a conveyance of real estate is made (and that, of course, includes a deed of trust) without the spouse joining (even if the spouse is not on title), it is presumed to be fraud.

 

[JETX]

jetx, maybe it is different where you live

The quote you provided was NOT made by me.

 

[Rhubarb297]

indiana. my fiancee just purchased a house. because of credit reasons, we left me off of the mortgage aplication. we would like to put my name on as part owner. i have heard of the quick claim deed. what is it and what do we do to get one. is there a time limit on doing this? how much is an avg. cost? thanks

See my answer above regarding the quit claim deed.

I'd probably charge you $55 if you came into my office. That's what I typically charge for my clients. Assuming that's the only work needed to be done and you had the legal and all other pertinent information. A big if.

Because I'm also from Indiana, I can tell you you have to think about what type of tenancy you want to have. You said he is your "fiancee." If you were married, Indiana is one of a minority of states that treats married couples owning property as "tenancy by the entireties" - which means both have to agree on conveyance of property during their lifetime. That tenancy also provides for survivorship. If one spouse dies, the other spouse receives the property upon that person's death.

But since you said you're not married, you can't use that tenancy. Your best bet would be "joint tenants with right of survivorship." That has the survivorship feature but doesn't require joint approval of conveyances. So your hubby-to-be could, if he got mad at you, sell his interest to someone else even though you also own the property. He can't convey your interest without your approval but he can convey his.

You definitely want tenancy by the entirities after your married, so possibly you need two deeds - one now and one later after you get married. I'm not positive but I highly doubt your JTWRS ownership of the property will automatically be converted to a tenancy by the entireties ownership by the mere fact of your marriage.

 

[seniorjudge]

The quote you provided was NOT made by me.

Oops! I am going home and going to bed. Monday morning, and all that!

 

[Rhubarb297]

jetx, maybe it is different where you live, but such a course of action may trigger a clause in the mortgage/deed of trust stating that the whole amount will be due.

Mortgagees are (or can be) skittish about the real estate they have encumbered being deeded off.

BTW, in Missouri, by statute if a conveyance of real estate is made (and that, of course, includes a deed of trust) without the spouse joining (even if the spouse is not on title), it is presumed to be fraud.

Actually, which I do find surprising, my experience is that it happens all the time in Indiana. Mortgage companies do insist that every one who is on the title also be on the mortgage. But most (although not all) don't seem to care if the property is quitclaimed AFTER the mortgage is recorded. At the title company we've had occasions where the lender is specifically told there is going to be a quitclaim after the mortgage is recorded and they had no problem with it.

That's interesting about Missouri law. That's certainly not true in Indiana. We often have one spouse mortgaging property or conveying property without the other spouse joining in. No presumption of fraud.

By the way that "deed of trust" term keeps throwing me. We here in Indiana have no such animal - they're simply called mortgages.

 

[seniorjudge]

We often have one spouse mortgaging property or conveying property without the other spouse joining in. No presumption of fraud.

I bet that it is cause for some interesting conversations on the old home front!

By the way that "deed of trust" term keeps throwing me. We here in Indiana have no such animal - they're simply called mortgages.

A deed of trust has three parties: grantor (borrower), trustee (sheriff, title company, john doe), and grantee (lender). It says that grantor conveys the real estate in trust and if the loan is paid off, the grantor gets a release from the lender.

 

[JETX]

By the way that "deed of trust" term keeps throwing me. We here in Indiana have no such animal - they're simply called mortgages.

A 'deed of trust' is NOT the same thing as a 'mortgage'. BTW, I believe they are called 'Assignment of Mortgage' in Indiana.

mortgage
n. a document in which the owner pledges his/her/its title to real property to a lender as security for a loan described in a promissory note. Mortgage is an old English term derived from two French words "mort" and "gage" meaning "dead pledge." To be enforceable the mortgage must be signed by the owner (borrower), acknowledged before a notary public, and recorded with the County Recorder or Recorder of Deeds. If the owner (mortgagor) fails to make payments on the promissory note (becomes delinquent) then the lender (mortgagee) can foreclose on the mortgage to force a sale of the real property to obtain payment from the proceeds, or obtain the property itself at a sheriff's sale upon foreclosure. However, catching up on delinquent payments and paying costs of foreclosure ("curing the default") can save the property. In some states the property can be redeemed by such payment even after foreclosure. Upon payment in full the mortgagee (lender) is required to execute a "satisfaction of mortgage" (sometimes called a "discharge of mortgage") and record it to clear the title to the property. A purchase-money mortgage is one given by a purchaser to a seller of real property as partial payment. A mortgagor may sell the property either "subject to a mortgage" in which the property is still security and the seller is still liable for payment, or the buyer "assumes the mortgage" and becomes personally responsible for payment of the loan. Under English common law a mortgage was an actual transfer of title to the lender, with the borrower having the right to occupy the property while it was in effect, but non-payment ended the right of occupation. Today only Connecticut, Maine, New Hampshire, North Carolina, Rhode Island and Vermont cling to the common law, and other states using mortgages treat them as liens on the property. More significantly, 14 states use a "deed of trust" (or "trust deed") as a mortgage. These states include: California, Illinois, Texas, Virginia, Colorado, Georgia, Alaska, Arizona, Idaho, Mississippi, Missouri, Montana, North Carolina and West Virginia. Under the deed of trust system title is technically given to a trustee to hold for the lender, who is called a beneficiary.

deed of trust
n. a document which pledges real property to secure a loan, used instead of a mortgage in Alaska, Arizona, California, Colorado, Georgia, Idaho, Illinois, Mississippi, Missouri, Montana, North Carolina, Texas, Virginia and West Virginia. The property is deeded by the title holder (trustor) to a trustee (often a title or escrow company) which holds the title in trust for the beneficiary (the lender of the money). When the loan is fully paid, the trustor requests the trustee to return the title by reconveyance. If the loan becomes delinquent the beneficiary can file a notice of default and, if the loan is not brought current, can demand that the trustee begin foreclosure on the property so that the beneficiary may either be paid or obtain title.

 

[Rhubarb297]

jetx, maybe it is different where you live, but such a course of action may trigger a clause in the mortgage/deed of trust stating that the whole amount will be due.

Mortgagees are (or can be) skittish about the real estate they have encumbered being deeded off.

Actually I'm the one who made that post. The original poster and I are from the same state (Indiana) by the way. And that is the way it is here. Not sure exactly why...you would think the mortgage company would have a problem with it, but they don't seem to. At least not here.

I'm not sure I've ever seen that provision in a mortgage. In fact, now that I think about it, if the property is going to be conveyed to someone else, the mortgage will generally be paid off. A title company is not going to insure the transfer to a third party via a warranty deed unless the lien (the mortgage) is paid off. And if it's a quitclaim then the new person takes ownership subject to the lien. Even if the original owner gets relinquishes ownership of the property through the quitclaim, that original owner is still on the hook for the note and there is still a lien on the property that the new owner is subject to.

 

[Rhubarb297]

A 'deed of trust' is NOT the same thing as a 'mortgage'. BTW, I believe they are called 'Assignment of Mortgage' in Indiana.

mortgage
n. a document in which the owner pledges his/her/its title to real property to a lender as security for a loan described in a promissory note. Mortgage is an old English term derived from two French words "mort" and "gage" meaning "dead pledge." To be enforceable the mortgage must be signed by the owner (borrower), acknowledged before a notary public, and recorded with the County Recorder or Recorder of Deeds. If the owner (mortgagor) fails to make payments on the promissory note (becomes delinquent) then the lender (mortgagee) can foreclose on the mortgage to force a sale of the real property to obtain payment from the proceeds, or obtain the property itself at a sheriff's sale upon foreclosure. However, catching up on delinquent payments and paying costs of foreclosure ("curing the default") can save the property. In some states the property can be redeemed by such payment even after foreclosure. Upon payment in full the mortgagee (lender) is required to execute a "satisfaction of mortgage" (sometimes called a "discharge of mortgage") and record it to clear the title to the property. A purchase-money mortgage is one given by a purchaser to a seller of real property as partial payment. A mortgagor may sell the property either "subject to a mortgage" in which the property is still security and the seller is still liable for payment, or the buyer "assumes the mortgage" and becomes personally responsible for payment of the loan. Under English common law a mortgage was an actual transfer of title to the lender, with the borrower having the right to occupy the property while it was in effect, but non-payment ended the right of occupation. Today only Connecticut, Maine, New Hampshire, North Carolina, Rhode Island and Vermont cling to the common law, and other states using mortgages treat them as liens on the property. More significantly, 14 states use a "deed of trust" (or "trust deed") as a mortgage. These states include: California, Illinois, Texas, Virginia, Colorado, Georgia, Alaska, Arizona, Idaho, Mississippi, Missouri, Montana, North Carolina and West Virginia. Under the deed of trust system title is technically given to a trustee to hold for the lender, who is called a beneficiary.

deed of trust
n. a document which pledges real property to secure a loan, used instead of a mortgage in Alaska, Arizona, California, Colorado, Georgia, Idaho, Illinois, Mississippi, Missouri, Montana, North Carolina, Texas, Virginia and West Virginia. The property is deeded by the title holder (trustor) to a trustee (often a title or escrow company) which holds the title in trust for the beneficiary (the lender of the money). When the loan is fully paid, the trustor requests the trustee to return the title by reconveyance. If the loan becomes delinquent the beneficiary can file a notice of default and, if the loan is not brought current, can demand that the trustee begin foreclosure on the property so that the beneficiary may either be paid or obtain title.

This language you quote highlights the difference: "The property is deeded by the title holder (trustor) to a trustee (often a title or escrow company) which holds the title in trust for the beneficiary (the lender of the money). When the loan is fully paid, the trustor requests the trustee to return the title by reconveyance."

We definitely don't do that in Indiana. Here the title is not held in escrow - it goes to the person who is on the deed regardless of whether there is a mortgage on the property. The mortgage is a lien on that ownership.

The concern Senior Judge points out is probably correct in "deeds of trust" states.

I don't recall studying "deed of trust" when I was in law school. But that was 20 years ago. Since we don't have it here maybe it wasn't covered at all. It is very interesting to here how other states do it.

 

[seniorjudge]

A 'deed of trust' is NOT the same thing as a 'mortgage'.

I never said they were. In fact, in Missouri you may still run across a mortgage ever once in a while.

The terms (kind of like podium and lectern) are used interchangeably around here but I have given up trying to correct lawyers, bankers, real estate agents, title companies, etc.