Legal Question in Real Estate Law in California
My Name is on a Grant Deed of a home in which my aunt purchased, I am NOT on the morgage loan. She is now filing for BK CH7 and will probably let the home go (Foreclosure). How can I get my name off the Deed, can I file a Quit Claim Deed back to her name and if so does she also have to sign? I would like to do this before she files BK, please let me know the best way to handle this (i.e. Grand Deed, Quit Claim...) I do not want a foreclosure on my credit.
Thank you -
1 Answer from Attorneys
Your question unfortunately lacks a couple of important facts, including:
(1) Is the grant deed bearing your name recorded, so that your name also appears on record title?
(2) Does the grant deed make you the sole owner, or are you a cotenant of some kind?
(3) Did the making and recording of the grant deed precede or follow the making and recording of the loan that would be foreclosed?
(4) When the house, or a part interest therein, was deeded to you;
(a) did you pay fair market value, or was the house or interest therein mostly or fully a gift? and
(b) did the mortgage lender give permission?
In addition, any transfer of ownership, including the one under which you got ownership, will have tax implications, both as to assessment for property tax purposes and gift and capital gains taxes, so it would be useful for a lawyer to have some idea of the relative value of the property at the time you acquired your interest, and currently.
To give you a partial answer, I can say that either a grant deed or quitclaim deed will be effective to transfer ownership back to your aunt, if properly filled out, and she does not have to sign it, BUT the deed muct be delivered to and accepted by her - one cannot foist off unwanted property on another person against their will.
If you re-ask your question including the listed details, we can take a second look at it.