quick claim deed

[seniorjudge]

...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. ...I don't recall studying "deed of trust" when I was in law school. But that was 20 years ago. ...

Title is not held in escrow when there is a deed of trust; the title is held in trust.

The deed of trust is a lien on the real estate. In Missouri, we have nonjudicial foreclosure...and we may be the only state that does. All you (lender with a loan in default) has to do is advertise the sale for four weeks and then (at the appointed time) go to the courthouse steps and "cry the sale."

Colorado has a pretty nifty system. That state has a "public trustee" in every county who handles all foreclosures. Seems to work pretty good.

 

[Rhubarb297]

Try again.

Would you like to place a wager on that one? I'm in-house counsel for an Indiana title company...I deal with these types of transactions all the time.
We quite often have property quitclaimed after mortgages. Quite often mortgage companies know this is going to happen and they don't care. Nor have I ever seen language in a mortgage which would prevent that.

The difference may be that Indiana is strictly a mortgage state. Mortgage companies in states that have "deeds of trust" would most likely take a different aproach.

 

[seniorjudge]

Would you like to place a wager on that one?

No, I do not gamble but what is "that one"?

 

[Rhubarb297]

Title is not held in escrow when there is a deed of trust; the title is held in trust.

The deed of trust is a lien on the real estate. In Missouri, we have nonjudicial foreclosure...and we may be the only state that does. All you (lender with a loan in default) has to do is advertise the sale for four weeks and then (at the appointed time) go to the courthouse steps and "cry the sale."

Colorado has a pretty nifty system. That state has a "public trustee" in every county who handles all foreclosures. Seems to work pretty good.

Sorry...misread the definition. I saw it could be held by an "escrow company" and wrongly said it was held in escrow.

Still this whole "deed in trust" is a strange bird to us here in Indiana. I guess the advantage is easier foreclosure - "nonjudicial foreclosure"....very interesting. Here foreclosure is a much more involved process.

 

[Rhubarb297]

No, I do not gamble but what is "that one"?

The poster (BelizeBreeze) had made a snide comment to my claim that property can be quitclaimed to others after the mortgage is recorded (in Indiana) and the mortgage companies generally don't have a problem with it. I believe his exact response was, "Try again." I was responding to that. "That one" was a refernce to the position I was taking.

 

[HomeGuru]

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.

**A: oh brother Rhubarb, are you really an attorney or just play one on the internet? You certainly are not a real estate attorney because if you read the mortgage notes, you will find the specific due on sale clauses.
In addition there are numerous cases where there is a conveyance of title interest by a joint tenant and the underlying mortgage is NOT paid off.

 

[seniorjudge]

In addition there are numerous cases where there is a conveyance of title interest by a joint tenant and the underlying mortgage is NOT paid off.

The destruction of the joint tenancy by one of the joint tenants has caused more ink to be spilled than...I don't know...the rule against perpetuities?!

 

[HomeGuru]

Would you like to place a wager on that one? I'm in-house counsel for an Indiana title company...I deal with these types of transactions all the time.
We quite often have property quitclaimed after mortgages. Quite often mortgage companies know this is going to happen and they don't care. Nor have I ever seen language in a mortgage which would prevent that.

The difference may be that Indiana is strictly a mortgage state. Mortgage companies in states that have "deeds of trust" would most likely take a different aproach.

**A: you should be an out-house counselor for your crappy posts.

 

[Fat Tony]

Oh Jesus Christ, you guys probably confused the hell out of the original poster with all your legal mumbo-jumbo. I hate to be the one to interject some common sense into this whole thing, but here goes:
You can (Read: It is possible to) quit-claim yourself on after the deed is in your fiancee's name. The lender could truly care less as long as you are making the payments. Here in Ohio, all that is required is for anybody else on the deed to sign a form stating they have knowledge of a mortgage lien being taken on the property. That is only if you take a mortgage without everybody on the deed. But quit-claiming anybody on or off after the fact really has no bearing on that. The lender is in business to loan money and collect interest. They are not in the business of aquiring real estate, allow me to correct myself, that is not their main focus. Do you really think that any lender is going to periodically check every loan in every county recorders office to see if the deed has been changed? Of course not. Again, as long as you are making your payments, they could care less. Start skipping payments, then they start to get worried, start to get antsy, thats when they may discover that, and if your mortgage has an acceleration clause for deed transfers, they may start a foreclosure because of that. Again, my simple advice is go ahead and do it, but be sure that you're making your payments each month, and they'll have no reason to foreclose. Do you think the bank wants to foreclose on somebody that is a good customer of theirs, and not behind on payments, simply because they got engaged, and added fiancee's name to the deed? Of course not. Nothing against lawyers, but come on people, lets use some common sense.

 

[seniorjudge]

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

Go to a lawyer to get a quit claim deed.

A quit claim deed conveys any interest the grantor (seller) has to the grantee (buyer).

There is no time limit.

I don't know what it costs.

 

[JETX]

Oh Jesus Christ

Welcome back. Lets see if you can manage to stay 'on the right track' and stick around this time.

However, as expected, your post is not correct. Though mortgage companies don't normally go around running title searches on property, it does happen. And since the 'no-no' part of this is usually written INTO the mortgage papers, the lender could have a right to the most common remedy, that of accelerated payments, in full in a short period of time.

So, bottom line to all of this.... READ THE MORTGAGE PAPERS. If they are silent on the issue of names on the title, then go ahead and consider quit-claim.

 

[seniorjudge]

Oh Jesus Christ, you guys probably confused the hell out of the original poster with all your legal mumbo-jumbo. I hate to be the one to interject some common sense into this whole thing, but here goes:
You can (Read: It is possible to) quit-claim yourself on after the deed is in your fiancee's name. The lender could truly care less as long as you are making the payments. Here in Ohio, all that is required is for anybody else on the deed to sign a form stating they have knowledge of a mortgage lien being taken on the property. That is only if you take a mortgage without everybody on the deed. But quit-claiming anybody on or off after the fact really has no bearing on that. The lender is in business to loan money and collect interest. They are not in the business of aquiring real estate, allow me to correct myself, that is not their main focus. Do you really think that any lender is going to periodically check every loan in every county recorders office to see if the deed has been changed? Of course not. Again, as long as you are making your payments, they could care less. Start skipping payments, then they start to get worried, start to get antsy, thats when they may discover that, and if your mortgage has an acceleration clause for deed transfers, they may start a foreclosure because of that. Again, my simple advice is go ahead and do it, but be sure that you're making your payments each month, and they'll have no reason to foreclose. Do you think the bank wants to foreclose on somebody that is a good customer of theirs, and not behind on payments, simply because they got engaged, and added fiancee's name to the deed? Of course not. Nothing against lawyers, but come on people, lets use some common sense.

FT, could you hit your ENTER key ever once in a while? These old eyes ain't what they used to be and could sure use all the help I can get. I read every word of your every post, so make it easy on me, okay?

 

[Fat Tony]

Though mortgage companies don't normally go around running title searches on property, it does happen.

Wow, they erased all evidence of my existence. Is that like this boards version of the Patriot Act?

Original Poster: Before you take anyones advice on Lenders using their accelaration clauses for quitclaim, ask them to quote you one instance, just one, where a mortgagor has been on time with all their payments, and the mortgagee has initiated foreclosure via the accelaration clause for quit-claiming someone on or off the deed.

Also, the quit-claim is a very simple form, unless an attorney is charging you $50 or less for everything, including filing, you should just do it yourself.

I never got an answer as to what state JetX practices law in. Anybody?

P.S. Sorry about that Judge, I get into rants and dont pay much attention to punctuation. I hope this is easier on you, and I'll continue to try harder in the future.

 

[JETX]

Wow, they erased all evidence of my existence. Is that like this boards version of the Patriot Act?

Yep. And we get to determine who is the patriot!!

Original Poster: Before you take anyones advice on Lenders using their accelaration clauses for quitclaim, ask them to quote you one instance, just one, where a mortgagor has been on time with all their payments, and the mortgagee has initiated foreclosure via the accelaration clause for quit-claiming someone on or off the deed.

And of course, that is a complete fabrication on what was actually asked in this thread.... or said by anyone.
How about showing us where ANYONE said that would or has happened??

Also, the quit-claim is a very simple form, unless an attorney is charging you $50 or less for everything, including filing, you should just do it yourself.

Actually, it is even easier than that!!
A perfectly good 'quit claim' form for Indiana can be downloaded at:
http://www.vuwriter.com/vuforms.jsp?displaykey=FM00000095

 

[HomeGuru]

**A: oh brother Rhubarb, are you really an attorney or just play one on the internet? You certainly are not a real estate attorney because if you read the mortgage notes, you will find the specific due on sale clauses.
In addition there are numerous cases where there is a conveyance of title interest by a joint tenant and the underlying mortgage is NOT paid off.

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