quitclaim deed on house with mortgage

[Jpony]

What is the name of your state (only U.S. law)? FL
Basically, what happens if I buy a property with a quitclaim deed on a property that still has a mortgage, I understand that the lender will be notified of the change of ownership and accelerate the loan and it will be due and payable in full from the mortgagor. Can they still come after the property?

I'm considering make an offer on a house that has been abandoned, I was going to have the owner sign a quitclaim deed because I doubt I could get her to do anything more and then do a quiet title later. From '88 to '07, she took out 13 loans. I have found releases or satisfactions for 12 of them. In '05 she took a $14,100 SBA loan that matured on 6/2014. I am assuming that for some reason the release just didn't get filed.

 

[justalayman]

Yes they can. The current owner cannot transfer rights any greater than they hold and that means they cannot transfer title free and clear.

The lien is recorded so you cannot argue ignorance.

 

[adjusterjack]

In '05 she took a $14,100 SBA loan that matured on 6/2014. I am assuming that for some reason the release just didn't get filed.

If that loan doesn't get released and recorded you can count on paying it once you own the house or lose the house if you don't pay it.

If you are paying cash and you can get the price down far enough to offset that loan, might still be worth buying it.

When it comes time to hand over the money, make sure you put a warranty deed in front of her (not a quitclaim deed). By then she'll be accustomed to the idea of getting rid of the place and (with check in hand) you can insist on the warranty deed or no deal.

 

[Jpony]

I am paying cash and a very small amount, I believe she thinks she has already lost the property to some foreclosure, there was a LP and then a release of mortgage filed after she left the property. Property taxes have not been paid and it is scheduled for tax deed sale in Feb. so either way she will be losing the property in a couple of months. I'm hoping she will see this as found money. I'll take my chances with the smaller loan, the Statute of Limitations will be up in a couple of years and it will be a moot point but I am willing to fight or negotiate if they do come after the property.

 

[LdiJ]

I am paying cash and a very small amount, I believe she thinks she has already lost the property to some foreclosure, there was a LP and then a release of mortgage filed after she left the property. Property taxes have not been paid and it is scheduled for tax deed sale in Feb. so either way she will be losing the property in a couple of months. I'm hoping she will see this as found money. I'll take my chances with the smaller loan, the Statute of Limitations will be up in a couple of years and it will be a moot point but I am willing to fight or negotiate if they do come after the property.

The problem is that you cannot get the property deeded to you while the lien exists...and you will also have to pay the taxes in order to avoid the tax sale. Therefore, this is NOT a good deal for you unless paying her, the past due taxes and the existing mortgage still make it a good deal. Statute of limitations do not apply when there is a lien against the property.

 

[FlyingRon]

Surely you can have property deeded with liens and tax obligations pending. However, that transfer is subject to those things.

 

[justalayman]

The problem is that you cannot get the property deeded to you while the lien exists...and you will also have to pay the taxes in order to avoid the tax sale. Therefore, this is NOT a good deal for you unless paying her, the past due taxes and the existing mortgage still make it a good deal. Statute of limitations do not apply when there is a lien against the property.

The property can most assuredly be transferred with an outstanding lien. It happens quite regularly. The grantee can accept property subject to a lien. It changes nothing.

There is an applicable statute of limitations for both the underlying debt and the lien itself. If the op is lucky enough to have the lender not act on the debt within the applicable statute of limitations, the debt is uncollectable through the courts. Then, contrary to most states, a lien based on a mortgage does in fact expire eventually on real estate in Florida.

 

[Jpony]

Well I knew I was going to have to pay the taxes and I did buy a property previously with issues that needed to be cleared up after the deed was signed, so that part's not a concern as long as it's done before the tax sale.

I went back and reread the statute of limitations 95.281, and while I only play a lawyer in my mind, it still reads to me that the SOL is 5 years from the date of the maturity and the mortgage specifically states the date is 6/1/2014, which means after 6/1/2019, they can't come after it. Or am I missing something?

 

[Jpony]

you can insist on the warranty deed or no deal.

The problem with that is we both know for what ever reason the SBA loan does not have a release, although I believe it has been paid off, she can't warranty the title because she can't prove it.

LdiJ, deeds are transferred every day with liens, clouds, assumptive mortgages (not anywhere as frequently now), past due taxes, hoa fees, etc and outstanding code violations. The last house I bought had a 10 year old open permit on. When I bought the property, I simply signed acknowledging it and took care of it before I resold it. And at least in Fl, there are sol's for mortgages and notes.

But I just wanted to follow up, I did buy the property, recorded it, paid all the back taxes and city fines and the county records now show that it is in my name.

My understanding is the lien holders can be asked to be notified by the county if things like taxes are not paid or if there is a change of ownership filed. Taxes not being paid seems to fall through the cracks a lot (or ignored by the banks). I'll find out soon enough if they are notified of the sale.

I guess my original questioned should have been, would I be notified if the deed has been transferred into my name and the bank tries to foreclose. Do they post notices on the property of pending foreclosures? As the listed owner of the property, would I be included in the suit or at least informed of it?

 

[latigo]

LdiJ, deeds are transferred every day with liens, clouds, assumptive mortgages (not anywhere as frequently now), past due taxes, hoa fees, etc and outstanding code violations. . .

You must excuse our in-house "Walter Mitty"!

LdiJ original registered to the site believing it to be devoted to "housekeeping and fast food industries" *. He's still having trouble discerning a lawsuit from a policeman's uniform.


[SUP]
[*] Apologies to actors/screenwriters Dan Aykroyd and the late Harold Ramis.[/SUP]

 

[Jpony]

follow up

Just a follow up not that anyone is really interested, just when I read other threads I often wonder what happened so. First, those were all stupid questions that I asked, my name is the owner of record so of course I would be notified and yes it gets posted on the house, answering my own questions.

I did buy the house. It is recorded in my name. It has been almost a year and I have heard nothing. I suspected all along that the mortgage had been paid and the SM was just lost in space. The statutes of limitations is 5 years from the end date of the loan and that's in about 6 months. So maybe another update in 6 months.

 

[HRZ]

THe SOL might even be earlier...like the date of missed payment /default .....I don't know ...you dig. I'd not ruffle a single Feather any too soon .