I quit claimed a property on which I was a co-signor so the other party could refinance and take me off the loan. Instead he modified the loan. I am now on the loan but not on the property. The other party lied to me. I want back on title. What will it cost to take him to court?
-Could you explain your situation a little more?Is there any equity in the property or is the loan more than the value?
There is no equity in the property. He just modified the loan for $100,000 than its value. However, he's lived in the house for 30 years and doesn't want to lose it. My goal is to get back on title, take out a hard mIndy 2nd and have him make payments )or lose the house). I think a strongly worded letter will get him to put me back on title; otherwise I want to sue for breach of contract. The 2nd will automatically come off when he refinances and takes me off title.
-Could you explain your situation a little more?Do you have a written contract that he was going to do what you say he was going to do?
How do you propose to get a second mortgage if there is no equity?
How do you propose to force him to sign for a second mortgage if a bank would somehow agree?
What do you have to gain by being on the title if there is no equity?
I do not have a written contract that he was going to use the quit claim to refinance instead of using it to modify his loan. He was supposed to take the quit claim deed to escrow. I also didn't know that the bank could modify the loan without my signature, which of course they can. I did tell him that absolutely he could not modify the loan. As for the second mortgage, my company is going to lend me the money then send him the statements. Though there is no equity in the property, my bet is that he will make the second mortgage payment instead of losing the property.
Dear JACUSTOMER - Without a written contract you would have no basis to sue him for a breach of contract. All contracts involving real estate must be in writing so without something showing what he promised I seriously doubt that you could prevail. I also cannot believe your mortgage company would lend money on the property if he did not sign and if they did they couldn't foreclose against him if he didn't sign the mortgage. So none of this appears to be a very likely course of action that will gain you any control. When you sign a quit claim deed you give up all rights to the real estate and unless you can show there was some written contract involved I know of no way to force him to add your name back onto the deed.
Since CA does not allow for deficiency judgments you cannot be sued for anything if the loan is not paid and if the property has no equity you can't sue your ex for any damages of lost value. I just do not see any legal way for you to get back on the deed based on these facts.
Can I sue him for fraud?
Yes you can try to claim "fraud in the inducement" in getting you to sign the deed. The burden of proof will be on you to prove that he said what he said since I'm assuming he will deny it. Even if you win and get your name on the deed I really don't see what benefit it will be to you but you can certainly file your suit and see what happens.
Do you have an idea what it will cost to file? Is this something you can do? Thank you
We cannot represent clients or prepare documents from this website as we are here for general information purposes only. The court costs vary in different courts but the filing fees are generally between $200--400. I doubt this would be worth hiring an attorney who would charge several thousand dollars and you have nothing to gain financially if you win the suit.
If I am on title, can I put a 2nd mortgage on the property?
If the lender will lend the money without your ex's signature then you can but it will not affect your ex since he would also have to sign the mortgage. Most lenders will not lend on that basis.
If I am on title and take out a private 2nd mortgage secured by the property, and I default on the loan, can the 2nd mortgage lender foreclose on the property?
Not unless both owners sign. Also, from a practical standpoint, if the first mortgage equals the value there would be nothing to gain from a foreclosure and the lender would be wasting their money.
Thank you David. Since I told the owners that, under no circumstances would I let them modify their loan, and they told me that they needed the quit claim deed in order to refinance, I feel lied to and cheated and am now stuck with a mortgage for the rest of my life. Is there anything I can do? Can I petition the court to sell the property?
Since you are not on the deed you cannot file for a partition sale. As I said above, once you sign a quit claim deed you are giving up your legal interest in the property. Your only hope is to sue for fraud but it is a long shot. In the future, before you sign any documents it would be best to consult with an attorney. No attorney would ever have to you to sign the quit claim. If they did it would be malpractice.
No problem and thanks for using our service - Dave
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