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Old 09-05-2008, 11:58 PM
 
6 posts, read 13,153 times
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I'm hoping some of you knowledgeable mortgage people can help me out with a delimma. I just discovered that an elderly relative is listed as a borrower on a house he no longer owns (his small % of ownership was transferred via POA on a Quitclaim Deed a few months after signing for the mortgage).

His name should have never been on the mortgage in the first place. I suspect his income was needed in order for the other owner to qualify for the loan.

Does anybody have any ideas/suggestions on If/or How to get the mortgage company to delete my relative's name from the mortgage? Should I contact a real estate attorney or simply contact the mortgage company on his behalf? What are the chances of getting his name off the loan?

Thanks for any help you can offer!
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Old 09-06-2008, 06:27 AM
 
Location: Beautiful Rhode Island
6,295 posts, read 10,463,432 times
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Well, I would first go to the county or city where the mortgage is recorded and talk to the clerk there about who handled the last sale documents (I'm assuming you don't know). Whoever did the sale (the closing attorney) should have had him taken off the record. If that doesn't work, you can try the mortgage company, but good luck with that- they are rarely, if ever, even remotely cooperative. Step 3, probably in short order, would be to contact a real estate attorney to deal with it.
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Old 09-06-2008, 07:23 AM
 
Location: Fort Myers, FL
1,286 posts, read 2,594,674 times
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i wouldnt suggest going to the lender. they have the right to call the loan due if he is no longer on the mortgage. after all he did sign the quit claim, which was stupid.

you need to find the current owner and get him to refinance it. call a real estate attorney.
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Old 09-06-2008, 08:20 AM
 
Location: OK
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Did he sign any mortgage papers?
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Old 09-06-2008, 08:32 AM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,094,482 times
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OP - I would find the person who is receiving the POA. I would also find out the closing attorney. A lot of elderly people get taken advantage of like this. Someone makes them buy the house then immediately transfers it to their name.

What brokerdave is talking about is the acceleration clause that most lenders place on a mortgage. IF the owners are changed on the deed w/out the lender's permission, then they can use the 'due on sale' clause to get the collateral or to have them pay in full.

Quote:
Originally Posted by brokerdave View Post
i wouldnt suggest going to the lender. they have the right to call the loan due if he is no longer on the mortgage. You mean off the DEED not the mortgage. They would need the lender's permission to be off the mortgage. after all he did sign the quit claim, which was stupid.

you need to find the current owner and get him to refinance it. call a real estate attorney.
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Old 09-06-2008, 09:53 AM
 
6 posts, read 13,153 times
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This really is a mess. This elderly relative (we'll call him George*) is now living with us and has nothing (no assets, etc) other than his SS income. The person who used to have POA is also a relative and is the other owner on the house. Considering this person (we'll call her Sarah*) has blown through all George's retirement funds/assets in a short two years and then put George in subsidized housing, it wouldn't bother me if the lender used the acceraltion clause -- just so long as George is off the mortgage. Oh, by the way, George is legally blind.

*Not their real names
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Old 09-06-2008, 09:57 AM
 
6 posts, read 13,153 times
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PS - He (George - see last post) did NOT sign the Quitclaim Deed signing over his ownership in the property to the other owner (Sarah). Sarah used her POA to sign the Quitclaim Deed in his "behalf".

George, unfortunately, DID sign the mortgage. So he's technically responsible for paying for a house he owned for about a month.

Bad, Bad, Bad.
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Old 09-06-2008, 10:04 AM
 
Location: Charlotte, North Carolina
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you should notify the police and get an attorney
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Old 09-06-2008, 10:22 AM
 
6 posts, read 13,153 times
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So, renriq02, is this as big a mess as I think it is? Our big fear right now is that Sarah is going to default on the mortgage (since this was 100% mortgage, she's upside down it). That would leave George holding the bag.

In your experience, is it likely that a mortgage company would come after someone who has no assets and no income except his social security check?

Also, does any of this border on mortgage fraud? I find it difficult to believe that a lender would allow an 80 yr old blind person to sign for a mortgage that he's only going to own 3% of the property (per the original deed)?????

I feel so bad for George. He trusted someone close to him that betrayed him (or at the very least was a horrible money manager).
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Old 09-06-2008, 10:31 AM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,094,482 times
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read below

Quote:
Originally Posted by ???NoAnswers View Post
So, renriq02, is this as big a mess as I think it is? Our big fear right now is that Sarah is going to default on the mortgage (since this was 100% mortgage, she's upside down it). That would leave George holding the bag.

In your experience, is it likely that a mortgage company would come after someone who has no assets and no income except his social security check? Yes...they come after everyone who owes them money.

Also, does any of this border on mortgage fraud? I find it difficult to believe that a lender would allow an 80 yr old blind person to sign for a mortgage that he's only going to own 3% of the property (per the original deed)????? You would need to contact an attorney to tell you this.

I feel so bad for George. He trusted someone close to him that betrayed him (or at the very least was a horrible money manager).
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