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Old 11-06-2014, 02:24 PM
 
1 posts, read 1,287 times
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Both my parents passed away last year leaving an estate with no money. The house they lived in had a reverse mortgage (all equity borrowed) and pass due property taxes and maintenance fees. The house is now going into foreclosure and I as the executrix informed the bank that I have no interest in the property.

I then received a letter from lawyers representing the housing association asking me to sign a Quit Claim Deed. How can I do this when this property will not be going into my ownership? Will all liens be paid when house is auctioned?
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Old 11-06-2014, 04:59 PM
 
2,990 posts, read 5,148,003 times
Reputation: 3078
Quote:
Originally Posted by Patti R13 View Post
Both my parents passed away last year leaving an estate with no money. The house they lived in had a reverse mortgage (all equity borrowed) and pass due property taxes and maintenance fees. The house is now going into foreclosure and I as the executrix informed the bank that I have no interest in the property.

I then received a letter from lawyers representing the housing association asking me to sign a Quit Claim Deed. How can I do this when this property will not be going into my ownership? Will all liens be paid when house is auctioned?


You need to speak to a lawyer.

Normally when there is a reverse mortgage, the house is sold when the last surviving spouse passes away.

The sale of the house is supposed to be used to pay back the reverse mortgage.

You need to speak to a lawyer ASAP.
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Old 11-06-2014, 06:29 PM
 
9,988 posts, read 17,073,297 times
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A Quit Claim deed is where you transfer your interest in the property but you don't promise that you actually have such interest. In this case there's probably some subtlety about whether you're deeding it over personally or as the executor of the estate. I don't see why you should sign in either case; once either the mortgage company or the housing association forecloses, the estate's interest is gone anyway.

If you did sign the deed as the executor of the estate, the housing association would then own the house.
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Old 11-06-2014, 09:43 PM
 
3,244 posts, read 4,806,313 times
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Originally Posted by daliowa View Post
You need to speak to a lawyer.
What? And pass up the wisdom of C-D members?
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Old 11-06-2014, 10:48 PM
 
2,990 posts, read 5,148,003 times
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Originally Posted by bigjake54 View Post
what? And pass up the wisdom of c-d members?

rofl
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Old 11-07-2014, 06:54 AM
 
17,263 posts, read 21,013,963 times
Reputation: 22535
Quote:
Originally Posted by bigjake54 View Post
What? And pass up the wisdom of C-D members?
Exactly!
Why would somebody want to consult with a certified professional regarding a potentially life-changing event when advice from anonymous, disinterested, and mostly unqualified people is available via the internet!

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Old 11-07-2014, 07:23 AM
 
Location: Mid-Atlantic
30,132 posts, read 29,816,434 times
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Quote:
Originally Posted by Retriever View Post
Exactly!
Why would somebody want to consult with a certified professional regarding a potentially life-changing event when advice from anonymous, disinterested, and mostly unqualified people is available via the internet!

You're not giving us much credit, Retriever. Daliowa told her to speak to a lawyer. That's invaluable information.
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Old 11-07-2014, 07:42 AM
 
Location: Pennsylvania & New Jersey
1,519 posts, read 3,938,498 times
Reputation: 1674
Quote:
Originally Posted by Patti R13 View Post
Both my parents passed away last year leaving an estate with no money. The house they lived in had a reverse mortgage (all equity borrowed) and pass due property taxes and maintenance fees. The house is now going into foreclosure and I as the executrix informed the bank that I have no interest in the property.

I then received a letter from lawyers representing the housing association asking me to sign a Quit Claim Deed. How can I do this when this property will not be going into my ownership? Will all liens be paid when house is auctioned?
Hi Patti,

Sorry to hear about your losing both parents in one year. That's gotta be tough.

Yes, although some of the earlier suggestions may be unnecessarily harsh, step one is to speak with a competent lawyer. A lawyer should explain how you now are wearing multiple hats legally.

One hat involves your own personal financial matters. The good news is that you have no personal responsibility to pay your parents' debts. You write that YOU (personally) have no interest in your parents' house. That's fine, but you the executrix still need to settle this.

And that's the second hat — you as executrix of your parents' estate. You've agreed to accept the responsibility of settling your parents' final financial matters. You now represent your parents, hence, you have the power as executrix to sign over the house — just like your parents could do if they were not deceased.

Since you have no desire to keep the house and you say there is no equity remaining, why drag this out through long court proceedings of foreclosure? Just contact the bank and offer to sign the house over to them as Daughter Doe, Executrix.

I found it a little peculiar that the housing association asked for a Quit Claim Deed. Seems to me like it would be more appropriate for you to give the deed to the lender as a Deed in Lieu of Foreclosure. This is why you need to speak to an attorney who can assess your situation and advise you accordingly.

I hope this helps, and good luck getting this settled promptly so you can more forward unencumbered with this burden.
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Old 11-07-2014, 07:56 AM
 
17,263 posts, read 21,013,963 times
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Originally Posted by Gerania View Post
You're not giving us much credit, Retriever. Daliowa told her to speak to a lawyer. That's invaluable information.
Daliowa's advice--as usual--was very good.
I was responding to bigjake's comment, which was actually right on target.

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Old 11-07-2014, 10:49 PM
 
2,990 posts, read 5,148,003 times
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Quote:
Originally Posted by Retriever View Post
Daliowa's advice--as usual--was very good.
I was responding to bigjake's comment, which was actually right on target.


I'm blushing.

One thing I don't understand is why the OP (as executrix) didn't sell the house immediately.
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