QUESTION
Rights to property if not on loan
Asked on Mar 12th, 2012 on Residential Real Estate - Nevada
More details to this question:
NEVADA - Originally, my husband, me and our son were on the title to the property. Loan for mortgage was given to my son. At the time, the mortgage co. was to have us sign as sellers. They did not. One year later, they sent ORIGINAL FHA loan docs to my son to have us sign them. We never did. That was in 2005 ¿ loan was done in 2004. To this day, our name is on the county¿s records as owners of the property. If my son who is the only person on the mortgage and has defaulted, if he files bankruptcy and wants to return the property to the mortgage co, what happens to the property and what are my husband and my rights regarding the property? We have removed his name from the property via the county with a grant bargain sale deed per his request. What rights do we have to the property, can they foreclose, how long after he files bankruptcy before the mortgage would do anything, or can they?
1 ANSWER
R. Christopher Reade
From the scenario that you have set forth, your Husband and you appear to be on title to the Subject Property but not on the Note or Deed of Trust. The answer to your property rights as against the foreclosing lender will center on the dates of recordation of the Deed of Trust and whether your rights as owners on title can and will be foreclosed out by the nonjudicial foreclosure sale which the Lender is likely to institute.
In bankruptcy (or otherwise), your son and his bankruptcy estate can only return to the Lender that property interest which he owns, which from your description would be no more than a 1/3 interest in the Subject Property if the Deed removing your son was not timely recorded and would be no interest if the Deed was timely recorded. Candidly the title scenario that you have set forth is sufficiently convoluted that you should probably consult with counsel regarding the status of the title and your rights, remedies and defense for this property.
Answered on Mar 30th, 2012 at 1:56 PM