Legal Question in Real Estate Law in Virginia

seller held financing

In April 2007, my husband and I entered an arrangement of 'seller' financing. This was facilitated by the seller's broker. We submitted a check for almost $17,000.00 and our names added to title by general warranty deed of gift. This transaction was done by a title company. The title is recorded by the county. Also, at the time of signing, the broker had my husband sign (I then signed as well) a short disclosure stating that we had to refinance the loan within a year,or we would be removed from title. Much to my husband's dismay, I questioned what loan were we supposed to refinance, the broker assured us that she would put together a short term note and we would refinance that. That part of the 'seller held' financing never materialized. MMy husband and I continued to pay the mortgage as we already had been doing for almost a year. We preoccupied before we closed the deal Now my husband and I ares separated and my sons and I occupy the home. Sine the seller has a VHDA note Ihave applied for assumption. The seller is now stating that if I do not refinance the note I am off the deed. There is no note to refinance.

also, can I have my estranged husband sign a quit claim and put our sons on title ?

Karen


Asked on 2/10/08, 8:39 pm

1 Answer from Attorneys
Robert Strupp Robert J. Strupp,Attorney at Law, PLC

Re: seller held financing

I suggest you contact a lawyer as soon as possible. A deed of "gift", is a transfer without monetary consideration. In the transaction you describe, it appears that you (and your estranged husband) are buying this property. The removal from title because you did not refinance is very odd and questionable. Either one is on title, or they are not. It is not likely that you would want minor children on title. Another alternative is to put the interest going to the children in a trust.

An attorney can explain these options to you.

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Answered on 2/10/08, 9:03 pm


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