Written repayment plan??

[Blueshirts]

What is the name of your state? Illinois

My sister and I have been co-borrowers for 7 years on a Mortgage that I plan on getting out of at the end of this month. Both our names are on the Mortgage and there were some issues on a pending foreclosure which we negotiated a repayment plan with our lendor and January is the last month for the repayment plan and that will bring our mortgage current.

There has been equity built-up and I would like to file a "Quit Claim Deed" on this property giving ownership to her. Ideally she could refinance putting her name and her husbands name on the Mortgage and pay me my portion of the equity. This is unknown due to credit issues from the some late payments on the mortgage. If this is not possible, what kind of a form or written letter do I need to document how she will pay me back over a certain duration of time? Also, do I need a lawyer for the "quit claim deed" ?

I am confused as to what if any action I should take to document what and how she will pay me the equity I am owed?

I realize this was probably a big mistake on my part but I never wanted to rent but now I may be paying for that decision.

Thanks

[FlyingRon]

DO NOT DO A QUIT CLAIM.

A quit claim will give away your interest in the property but will NOT relieve you of your obligation to pay the existing mortgage.

If you want out and your sister wants the property with her new spouse, then you should arrange a sale of your share, and they should secure a new mortgage in order to pay off the previous one that has your name on it.

A lawyer is probably advisable.

[Blueshirts]

Originally Posted by FlyingRon

DO NOT DO A QUIT CLAIM.

A quit claim will give away your interest in the property but will NOT relieve you of your obligation to pay the existing mortgage.

If you want out and your sister wants the property with her new spouse, then you should arrange a sale of your share, and they should secure a new mortgage in order to pay off the previous one that has your name on it.

A lawyer is probably advisable.

Thanks for the response. This is a messy situation that I ultimately regret.

How do I arrange to sell "my share" of the house? By having them refinance and just paying me from the equity built-up? In that case I wouldn't even need a quit claim deed correct?

I apologize but I am pretty green to this whole thing.

[Andy0192]

If this is not possible, what kind of a form or written letter do I need to document how she will pay me back over a certain duration of time?

Consider that the bank had a written contract and wasn't being paid in a timely manner.

[LindaP777]

Originally Posted by Andy0192

Consider that the bank had a written contract and wasn't being paid in a timely manner.

But surely someone who promises to pay a bank and does not, would honor a payment agreement with her own sister??? Hmmm . . . maybe not.

[HomeGuru]

Originally Posted by LindaP777

But surely someone who promises to pay a bank and does not, would honor a payment agreement with her own sister??? Hmmm . . . maybe not.

**A: very scary....

[Blueshirts]

Originally Posted by HomeGuru

**A: very scary....

Yes, well I am going to contact a lawyer to see if there can be some stipulation written in the Quit Claim Deed or a separate document stating (almost like a lien) that the transfer of the title can not take place until the conditions have been met (me getting paid the agreed amount of equity). Basically saying that she can't sell the house until I am paid. Not sure if this is possible from a private party.

I also have to clarify if the Quit Claim Deed gets filed with the Mortgage company and releases me from Financial responsibility. I realize that my name is still on the Mortgage contract but I am not clear if the Quit Claim Deed and how it is written has any bearing on that.

My head is spinning!!!!!!

[FlyingRon]

You need to talk to a lawyer seriously because you are incredibly confused over what you are talking about.

A quit claim is a document giving up whatever ownership you have in a property. It's different from a warranty deed in that you do not assert you actually have any interest in the property (generally it's used for the ... I don't think I own it, but in case I do here it is).

It gets filed with your land records office (usually the county courthouse).

It does not get filed with the mortgage company and does not have any bearing whatsoever on the existing mortgage and your continued responsibility to pay the outstanding debt.

You can not get out of the financial responsibility for the mortgage short of them getting paid for the outstanding balance. This is typically done either because a refinance pays them off or the proceeds of a house sale does so.