Real Estate Law
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Are you able to pay the amount owed on the mortgage?
Do you mean like monthly or the full amount of the mortgage due?
A quitclaim is a transfer of ownership in a property. It does not affect any liens that are on the property itself. A mortgage represents a security interest, securing the property for the repayment of a loan. The lien that is attached to the property as a result is not affected by a transfer of the property, nor even bankruptcy. Bankruptcy would only relieve the personal liability of the loan, not the security interest. So even if she had not transferred this property to you, they could still foreclose because the security interest is not affected by bankruptcy. The only ways that a lien could be "forgiven" are if (a) there is a "release of lien" on the property, where the lienholder (the bank) releases the lien, either in full payment of the amount owed or in agreement for a lower amount, as in a deed in lieu or short sale, or (b) a foreclosure. These are the two ways that the lien can be released. Now if you can pay that amount owed, you can get that lien released. They might agree to take a monthly payment, but typically this would require a "refinance" into your name, and would make you personally liable for the mortgage.
If I were you, I would contact the lender and see about the possibility of a refi into your name, because you're the legal owner of the property.
But that's entirely up to the lender. Now if you can get the entire amount due then you could stop the foreclosure, even without the consent of the lender, as you have the right to pay off that amount before the public sale. But if you want to pay anything less than the full amount due, that would have to be with the permission of the lender.
so it would be better to talk to the lender and make a arrangement with them possibly a refi because if i just pay off before the sale my daughters name will still be on the loan itself right?
If by "pay off" you mean bring it current, yes, her name would still be on the loan, although whether or not it's on the loan or not, if you can bring it current (that is, if that is an option) then that probably would be better for you, as that would not incur personal liability on you. It would not show up on your credit report, etc... But most lenders are not willing to do such a thing. If the owner has transferred the property out of her name, they will almost always want the new owner to incur liability for a loan.
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I personally would prefer that and would not mind the personal liability and having my daughter off of the loan. Does this information go to my e-mail? I would like to refer back to it.
I'm not sure if it does or not (I don't have any control over that). Unfortunately I don't have any access to your email address (JustAnswer doesn't let me have access to that) and even if I did, it would be against the terms of service to send you any communication off site. After you rate this, though, this will switch from chat to Q&A, at which point you'll be able to print it out, or copy and paste, etc...
You can also come back to this page to refer to it, at your convenience.
Oh o.k. how would I come back to this page?
You can bookmark it (ctrl+D) or through your bookmark tool. You can also log back into JustAnswer and access it through the "my questions" link in the top right of your screen.
O.k. Thank you so much for your help.
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