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Andrea, Esq.
Andrea, Esq., Lawyer
Category: Real Estate Law
Satisfied Customers: 12554
Experience:  I have practiced law for 25 yrs. with an emphasis on real estate, business law, criminal defense and family law.
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RE: A Deed in Lieu of Foreclosure that Chase Bank is offering

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RE: A Deed in Lieu of Foreclosure that Chase Bank is offering us, there is one paragraph on the Statutory Warranty Deed that we don't understand:

"The GRANTEE by accepting and recording this Deed does not intend a merger of its interest under that certain Deed of Trust recorded under XXXX County Auditors File No. XXXX and it is the intention of the GRANTORS that the Property shall remain subject to the lien of said Deed of Trust, which lien shall remain a first lien upon the Property."

Could you "translate" this into people speak? Additional Info: We live in Washington state. The house is currently vacant and there are no other liens or judgements on it (aka: the title is clear). We were discharged from a CH 7 bankruptcy in March 2011 (we did not reaffirm the mortgage) and have been begging them to foreclose or take a DIL for over a year - our BK attorney is out sick this week and this must be mailed back to them in the next day. Help!

Hi, My name is XXXXX XXXXX I would be glad to assist you with your question,

 

Please allow me to first give you the definitions of the words they use and then I will put everything together in a coherent sentence, Okay ?

 

If this is the Deed which Chase prepared and is asking you to sign, the "Grantee" here is Chase, the party which is receiving something; the "Grantor" is you, the one who is giving something

 

You gave a Deed of Trust to Chase - i.e., you gave Chase a Mortgage on your property as security for the repayment of the loan they gave you.

 

Legally, when a greater and lesser interest are held by the same party, the interests are said to merge together. Here, Chase does not want its interests to merge

 

Therefore, translating what is said into English,

 

""The GRANTEE by accepting and recording this Deed does not intend a merger of its interest under that certain Deed of Trust recorded under XXXX County Auditors File No. XXXX it is the intention of the GRANTORS that the Property shall remain subject to the lien of said Deed of Trust, which lien shall remain a first lien upon the Property."

 

Means that when you give Chase the Deed in Lieu of Foreclosure and it becomes the owner of the property,

 

Chase's interest as the owner of the property will not merge with its interest as Mortgagee and it is also your intention that the property remain subject to the Mortgage which shall remain a first lien on the property.

 

Here is the botXXXXX XXXXXne

 

The mortgage will not be extinguished when Chase accepts your Deed in Lieu of Foreclosure and the Mortgage will remain on the property as a first lien.

 

Apparently, Chase wants the mortgage to remain on the property. It is probably for their accounting purposes. It cannot be enforced against you because you did not reaffirm the Mortgage.

 

_______________________________________________________________________

 

 

Please be kind enough to rate Excellent Service" so that I receive credit for assisting you,

 

Bonus and Positive Feedback on survey is very much appreciated,

 

ANDREA

 

 

Andrea, Esq. and 6 other Real Estate Law Specialists are ready to help you
Customer: replied 3 years ago.

A couple of Business Law classes just did not tell me enough to be certain I wasn't signing some important rights away - THANK YOU SO MUCH for your help.


 


You answered the question thoroughly and made it super easy for us to understand.


 


Thanks for your speedy response as well!

You are very welcome and Thank you for the compliments

 

Since I do not have any details of the transaction with Chase, I cannot say for sure what their reason is behind their desire to keep the mortgage on the property and I can only say that the only way it makes sense is that it is for accounting purposes. But, as I said, if it was discharged in Bankruptcy and you did not reaffirm it, they cannot enforce it against you,

_____________________________________________________________

 

Please be kind enough to rate Excellent Service" so that I receive credit for assisting you, It will not cost you anything additional to give a rating

 

Bonus and Positive Feedback on survey is very much appreciated,

 

ANDREA