QUESTION
Is a deed that was signed before she was granted the property in court settlement valid?
Asked on Aug 27th, 2012 on Divorce - Florida
More details to this question:
If the ex-wife quit claim in the deed over to the children of the deceased spouse. She still owes on a loan that she took out on the home. Who is responsible?
13 ANSWERS
James Albert Bordonaro
The ex-spouse is still responsible unless the bank authorized the transfer to the kids.
Answered on Sep 05th, 2012 at 10:07 AM
Dennis P. Mikko
The quit-claim deed only transfers whatever interest she may have in the property. A mortgage on the property would remain her responsibility, however, if she did not pay, the creditor could foreclose and obtain ownership of the property. The quit-claim deed does not extinguish the mortgage. The people taking under the deed take subject to the mortgage.
Answered on Sep 05th, 2012 at 10:07 AM
Alternative Dispute Resolution Attorney serving Coral Gables, FL
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Robert J. Merlin, P.A.
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If she signed the note for the loan, she is liable for the loan even if she transferred title to someone else, regardless of whether it is her kids. IN many loan documents, the transfer could trigger an acceleration of the note so that the entire outstanding balance is due at once.
Answered on Sep 05th, 2012 at 10:06 AM
Child Custody Attorney serving Grand Rapids, MI
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Ryan Maesen PLC
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She is but they can lose the house if she defaults.
Answered on Sep 05th, 2012 at 10:06 AM
Family Law Attorney serving Petaluma, CA
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Law Office of Erin Farley
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The answer lies in who holds the mortgage, ie, to whom the court assigned the payments/liabilities/encumbrances.
Answered on Sep 05th, 2012 at 10:05 AM
Bankruptcy Attorney serving North Olmsted, OH
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James F. Lentz Attorney & Counselor at Law
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A mortgage is separate from a deed to property. Ex-wife cannot convey by deed more than she owns. She only owns the part of the property paid off currently on the mortgage. She still owes on the mortgage.
Answered on Sep 04th, 2012 at 10:03 PM
2 Awards
She's still liable on the note. The children take the deed subject to the mortgage. Many mortgages have a due on sale clause that could result on the kids losing the land.
Answered on Sep 04th, 2012 at 9:57 PM
Criminal Defense Attorney serving Tarzana, CA
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The Law Office of Anthony A. Roach
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A quit claim deed is different than a grant deed. A grant deed will convey not only property that the person who executes it owns, but property they subsequently acquire. A quit claim deed is different. It only deeds property that the person has title to at the time. If they don't hold title at the time they execute the quit claim, nothing gets conveyed to the grantee.
Answered on Sep 04th, 2012 at 8:47 PM
The quit claim deed does not change the loan liability.
Answered on Sep 04th, 2012 at 8:42 PM
Michael T. Maddaloni
Whoever is on the mortgage note, land contract or contract. Name on a deed gives an interest in the property, dosen't mean free and clear. Somebody has to pay for the property, as well as the taxes, and that would be the purchaser, or the person who contracted to buy the house.
Answered on Sep 04th, 2012 at 8:19 PM
Business/ Commercial Attorney serving Seattle, WA
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Wolfstone, Panchot & Bloch, P.S., Inc.
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The former wife remains obligated on the mortgage loan to the bank. She probably did not realize the consequence of her action, but her quit claim deed releasing her interest in the property does not change her contractual duties owed to the bank.
Answered on Sep 04th, 2012 at 8:18 PM
Criminal Law Attorney serving Fremont, CA
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Steven J. Alpers, A Professional Corporation
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The bank would say she is. If she is renting to the children they should pay her. I don't know their ages.
Answered on Aug 30th, 2012 at 10:53 AM
Criminal Defense Attorney serving Deltona, FL
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R. Jason de Groot, P.A.
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The children take the property subject to the lien.
Answered on Aug 30th, 2012 at 10:51 AM