Will this situation stop a Sherriffs sale?

[Patricia Ann]

What is the name of your state?Pennsylvania. Okay here we go.It's a strange situation.The mortgage is in my Uncles name.He quit-claim deeded it to me when he was going into surgery.He is ill and has fallen behind in payments.Sherriffs' sale is scheduled for August 17, 2005.Will the deed in my name be enough to throw a wrench into a any bidders sale attempt?If so..is there time to get to an atorney and file a postponement?I am trying to work out a loan modification with the loan co.but they haven't gotten the papers to us?Can the lender postpone the sale???And what happens if no one buys the house?Thanks for any help out there.patricia
Also does anyone know of any investors that would lend just the catch -up balance owed to a deed holder to prevent foreclosure?Perhaps with a contract for equity percentage when the home is sold?

[4meandyou]

GOOD MORNING! SORRY TO BE THE ONE TO TELL YOU BUT NO YOUR UNCLE SIGNING THE PROPERTY OVER TO YOU WILL NOT STOP THE SALE. BUT IF USED IN THE CORRECT WAY IT COULD REALLY MAKE THINGS HARD ON THEM AS FAR AS FORECLOSING ON THE HOME. undefined

[Patricia Ann]

Hello.What did you mean by if the deed is used correctly it could make it hard for the forclosure.Please expand on this subject forme.thanks alot.i'd be glad to hear what you kow about it. Patricia

[mdcsoft]

Deeding the property to you gave you legal right to the house, but the mortgage is still there. If you don't pay it, they'll foreclose on it.

The hard part about getting a loan now is that most states have a "right of recission" for contracts like this. Basically, the borrower has a certain number of days to back out of the loan. Therefore, they make you wait until that time has passed to get your money. As the sale is tomorrow, it's too late for that.

Either you or uncle could file a chapter 13 bankruptcy, which would temporarilly postpone the sale. Your best bet might be to ask for 30 days to complete a forbearance plan, which it sounds as though you've already started.

Good luck

[Ciarraine]

Ok, here's the real deal from a Pennsylvania-licensed title agent.

Your uncle quitclaiming the property to you, while he had a mortgage, was a breach of his contract with the lender. This activated the mortgagee's due on sale provision, which basically says if you change all or part of the ownership of the home, you have to pay it off. That he's fallen behind in his payments is yet another strike against him.

Was the quitclaim ever recorded? Was the quitclaim acknowledged before a notary public? If not, it's probably better for him.

As was mentioned, filing a personal bankruptcy may be your uncle's best bet, particularly if the quitclaim wasn't recorded. This is because when you file a bankruptcy the US Bankruptcy Court issues an "automatic stay" telling all the creditors to stop their collections efforts while the court tries to sort things out. It buys your Uncle about 60 to 90 days to get things either worked out, or worked out by the Court.

Go see a lawyer as soon as possible.