OK, My mother is having some financial and health issues so she is looking into moving to a HUD apartment for older citizens.
Here is my issue: several years ago my Mom refinaced her home and we put my name on the title of the house, I am not on any of the loan documents. She may have to just "walk away" from the house. I don't think the loan company can come to me for payment, but how can I get my name off that title? It would make me feel a WHOLE lot better!!!
Thanks!
My Mom lives in Missouri
The house is on the market, but from what I understand the housing market in Belton is not too great (and hers needs some work).
Thanks. I'm wondering if I can file all of this by mail or if I'll have to go in person.
The loan company can not come to you for the payment. It just happened to my daughter - except her husband died. All of the loan paper work was in his name - but the deed had her name on it too. She had to walk away because she was so upside down in the house.
You can sign a quit claim deed to your mother and make sure it's filed before she walks away.
I sure would ask the Realtor or some other person I trusted to know the laws. I think if your name is on the paperwork they can come after you for payment.
Just to expand on the short sale idea - if you do go that route, which I would recommend also - make sure the bank agrees to a short sale WITHOUT RECOURSE. If those words aren't in the agreement then the bank could potentially come after your mother later for the difference. Without recourse means they agree to the lower amount and agree to not sue her later.
You have your name on the deed, not the title (titles are for things like cars and trailers). Your mother needs to file a Quit Claim to get you off the deed, just call your local court house for info on how to do that. It should be easy and free or very cheap.
And she might be able to walk away from the mortgage, but if I were you, I would try to sell the house first, even if you can only get enough to pay off the mortgage.
A quit claim will get you off. I think it was 26 or 27 to file but you are better off having an attorney do it. Even if you are not taken off the title you cannot be held responsible for the mortgage on the house.
I could use a quit claim to put you on my deed of trust, do you think it would be fair if that made you responsible for my mortgage. Imagine the fun people could have with that?
Seriously I put my husband on my deed of trust earlier this year. He never had to sign the document or even see it. My mortgage company didn't even care. The two things have nothing to do with the other.
While you are filing the paper work for a Quit Claim, I would contact the bank and find out about a short sale. This is when the price is lowered below value and the bank agrees on the price. It might help it sell faster and the bank would get more then a foreclosure. I am not sure about the laws in Missouri, but the bank can still sue for any money owed on the property if it forecloses. This could cause problems for your Mom.
All you have to do is go to an office supply store and get a Quit Claim Deed. Fill it out with you and your mom as the grantor and just your mom as the grantee. It needs to be notarized, which you can do at most banks. Then take it to the Recorder of Deeds office in the county that the property is in and have the deed recorded. Hope this helps.
