Alitra Posted July 24, 2007 Report Share Posted July 24, 2007 Hi, my dad has a house with a mortgage and a judgment lien on it. He is going to be moving in with me and was prepared to just walk away from the house. Somebody has offered to buy the house for the amount of the lien and mortgage. My dad is a strange guy, he would rather just walk away than try to deal with his problems, so, it falls to me to try and make something happen. Is is possible to do a quit claim deed to transfer the property (including mortgage and lien) to somebody? Thanks for any help. Link to comment Share on other sites More sharing options...
rella5 Posted July 24, 2007 Report Share Posted July 24, 2007 Most lenders will not allow a mortgage to be transferred. Unqualified loan assumptions are a thing of the past. Lenders will not add anyone to a mortgage without qualifying them like it was a new loan. If the buyer is only willing to pay the amount of the lien and the mtg and there will be nothing left for your Dad I can sort of understand why he would be willing to walk away. Is there any equity in the house after the lien and the mtg are paid?There are a lot of factors involved here, his age, his health, his economic status,the condition of the property, the state of the real estate market in his area, etc etc. All of the above and more should be considered. sometimes the easiest thing is to walk away, but maybe a conversation with the lender may come up with a cleaner alternative to "give the property back" to them and save more legal hassles later. Its hard to give advice or opinions without knowing all the details. Link to comment Share on other sites More sharing options...
Alitra Posted July 24, 2007 Author Report Share Posted July 24, 2007 My dad is 70 years of age. He gets social security and a small pension. My mom took care of all financial stuff throughout their entire marriage and she died four years ago. Before she died they racked up some very large credit card bills.My brother gave my dad some "great" advice, told him to ignore the CC bills and they would go away. Two years ago a lien was placed on the house for over 12,000 dollars. I just found out about it about, while trying to get him to sell the house and move in with me. Apparently when he found out he was being sued he just ignored it. My brother, his wife and 2 young children have been living with dad for the last 5 years or so. The house has been destroyed and is a dump. He does have a lot of equity built up in the house, and about 18k left on the mortgage (and 12.5k on lien). He has no other assets and I would be afraid to even sit in his car, let alone drive it anywhere. He had some money in the bank (which was from his SS checks and small pension) and they garnished all of it. Then did it again another time. Dad knows they are not supposed to touch his SS money but it would take effort on his part to make them stop, so he does nothing. I will try to put it as nice as I can say, my dad is wimp and has been his entire life. (Sorry, not trying to be mean, just stating the facts ). A person could probably walk into his home, empty it out completely, in front of him, and he would let them... and then NOT call the police afterwards because he would rather ignore it. The buyers are an acquaintance of ours. They are refinancing their own home to pay off the mortgage and lien on dads house. They are buying it for their son who was hurt in an accident a few years back and is somewhat disabled. If dad signed a quit claim deed over to them, could they write a check to the mortgage company, pay it off, pay off the lien, and then file the deed? Dad won't call the bank, won't call the CC agency, won't even talk to the folks who want to buy it. He would sign his name to a piece of paper though. Sorry for such a long post, just trying to give you the details but it is a long and drawn out story. Link to comment Share on other sites More sharing options...
rella5 Posted July 24, 2007 Report Share Posted July 24, 2007 The world is full of different kinds of people. I'm sure you are frustrated with him for not taking care of business but ya know some folks just don't live in our world- perhaps, I hope, he has some endearing qualities that you can love him for. Anyway, back to your question, he can sign the deed over, but that will not get him off the mtg. He and the buyers need to have a sales agreement, go to a real estate atty or settlement agency, and have a settlement whereby the mtg and the lien are paid from the proceeds at closing. The buyers provide those funds either with their own funds or from a loan which they obtain. He cannot just transfer the mtg to somebody unless the mtg co allows it and that is doubtful. Link to comment Share on other sites More sharing options...
rella5 Posted July 25, 2007 Report Share Posted July 25, 2007 one more thing - maybe the best piece of paper he could sign would be the power of attorney to you. Link to comment Share on other sites More sharing options...
whocares Posted July 25, 2007 Report Share Posted July 25, 2007 Can you go to the mortgage company, claim Dad is getting senile and may need to go into a home...Mortgage companies know more leins will be placed on the property if this happens...ask them of they will accept this buy out offer...ask them to include the lein in the financing. Ask them to meet with the buyers and get things ready...then you handle Dad...if he is as easy as you said...you can manuever this. Link to comment Share on other sites More sharing options...
keith Posted July 25, 2007 Report Share Posted July 25, 2007 the mortgage company is the ist lien holder, if it sells for more than he owes, they get all of theirs. As they will be the 'owner' when they foreclose, they don't care who's behind them lien wise, unless it's the irs. Link to comment Share on other sites More sharing options...
keith Posted July 25, 2007 Report Share Posted July 25, 2007 one more thought, if it sells for less than what's owing, anyone (lienholders) that do not get all their money will probably file a '1099c' w/ irs, and your dad will owe income tax on the money those lienholders write off. Link to comment Share on other sites More sharing options...
Del Posted July 25, 2007 Report Share Posted July 25, 2007 Rella5 has it right on this matter, contact a title company and they will help you with the sale. usually they have all the documents you need and can be very helpful. Link to comment Share on other sites More sharing options...
Alitra Posted July 26, 2007 Author Report Share Posted July 26, 2007 Thanks for all the replies folks. I do love may dad, I just accept him for who he is. I know he certainly is not going to change at this point in his life. He is no more senile now than he was 50 year ago. I'll contact a title company and see what they charge. Link to comment Share on other sites More sharing options...
rella5 Posted July 26, 2007 Report Share Posted July 26, 2007 Good Luck, good for you lookin out for Dad. Let us know how everything turns out. Link to comment Share on other sites More sharing options...
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