Legal Question in Real Estate Law in California
Quit Claim Deed
In 1992 we quick claimed our home to my father-in-law. 12 years later I am divorced, my name remains on the loan with the bank and until my ex-father-in-law decides to sell the home or refinance my life is in limbo. They refuse to do anything to remove my name and in their time they will sell the house. I feel it's unfair that I can not go on with my life and puchase a home of my own. What rights do I have.
4 Answers from Attorneys
Re: Quit Claim Deed
There is a good possibility that the bank has a "Due on Sale" clause in their note. Call them, and tell them you sold the house, and you want the loan called.
Re: Quit Claim Deed
My wife went through this with an ex-husband several years ago. I need to know more about the original loan. Was it purchase money for the house? Is there equity in the house? If both are true, most lenders will allow you to explain the situation and prove that someone else has made the payments for a period of time that varies with each lender. If only the first is true, most lenders will still work with you because there is no possibility of a deficiency judgment against you (at lease in California). If only the latter is true you will still probably be O.K. with most lenders because of the equity. This is no longer the problem that it once was.
Bob
www.beauchampfirm.com
Re: Quit Claim Deed
I've read the other two answers. Alternative number one: If the deed hasn't been recorded, why don't do a new one and record it? There's a sheet that has to be attached signed by the buyer. However, that problem could be taken care of by you signing as an agent of the buyer. Or change the signature line to show that you're signing as the seller. The former father-in-law just doesn't want a Prop. 13 reappraisal. So you may also back date the deed to the date of the original deed that you first signed. There is an exception to a Proposition 13 reappraisal. So be sure and check that block. The notary is simply verifying that the person signing the deed is who they say they are. She/he isn't concerned with dates of documents. So when you're ready to record the deed call your ex-father-in-law and tell him what you are doing. And ask him if he'd like to record the original deed you gave him, or would he prefer that you record this one. I'd love to be there when the fur flies. Alternative number two: You may also deed the property to a stranger. Then record that deed, and you've now placed your ex-father-in-law in the position of being a partner with a stranger. The first to record their deed is the one that owns the property. These ex-relatives are not playing with a full deck. Until that original deed is recorded you own part of that property. And you may transfer it today to whomever you want to. It's called hard ball, and only big guys should play it. So tell them what you're going to do and see how fast that deed is recorded. Let me know what their reactions are.
Re: Quit Claim Deed
Maybe one more contribution will help. If I were handling your case, I would want to review your divorce file. A dissolution of marriage decree is supposed to apportion the community assets and liabilities equally. It would be enlightening to know what you received in exchange for shouldering this burden. You may have some sort of equitable claim on the house.