Title defect from amended divorce decree

[lostcause1]

What is the name of your state (only U.S. law)? Minnesota; I had a divorce decree in 1994 that involved our homestead keeping a Joint Tenancy deed. We had agreed to allow the ex-wife to stay in the home by granting a marital lien of half the equity to me the ex-husband, and included my paying child support by making mortgage payments and keeping up health insurance for the children. The custody arrangement was 50-50. However, in 1995 my ex-wife decided she wanted more child support and requested it through the county welfare agency. I was in an alcohol dependcy treatment center at the time and hired a lawyer to represent me in court in my absence. I was told by my lawyer that the judge was very urgent that I had to change to having child support withheld from my paycheck and accept the equity share as a lien without any interest, otherwise he threatened to force the sale of the house. I signed the amended decree, but several years later, I was summoned to court to again change the decree to a lower amount of equity and higher child support payments. During a recess of that hearing I walked away from the courthouse, because the stress was too much for me at the time I decided to leave. Then in 1999, I co-signed a City Rehab mortgage to expire in 2009, but retained a right of refusal. Anyway, after much treatment [successful] several more years passed and in 2005 I accepted the reduced payment with no interest during my ex-wifes refinance of the house. I am remarried, so we both signed the Quit Claim Deed and release of Land Lien. However, by some unknown reason the Quit Claim Deed was never filed. My ex-wife passed away from Lung Cancer Sept 2011, and the house during that time became foreclosed by the Mortgagee. All without my knowledge. Recently, I was contacted by a new buyers lawyer to sign a Quit Claim Deed right away, or they plan to force a clear title in court. Do I have any rights here?

 

[NC Aggie]

...in 2005 I accepted the reduced payment with no interest during my ex-wifes refinance of the house. I am remarried, so we both signed the Quit Claim Deed and release of Land Lien. However, by some unknown reason the Quit Claim Deed was never filed. My ex-wife passed away from Lung Cancer Sept 2011, and the house during that time became foreclosed by the Mortgagee. All without my knowledge. Recently, I was contacted by a new buyers lawyer to sign a Quit Claim Deed right away, or they plan to force a clear title in court. Do I have any rights here?

By accepting the payment, you agreed to the terms of the agreement which were to give up any interest to the property. Additionally, if the property was foreclosed and you had first refusal rights, those rights would have been extinguished with the foreclosure. First refusal would have given you the right to purchase the property if your ex-wife put the house on the market, it does not carry over to a bank's sale of the property. However, as a co-signer, you should have been notified when the property went into foreclosure and given the opportunity to bring the house out of its delinquency, were you not?

 

[LdiJ]

By accepting the payment, you agreed to the terms of the agreement which were to give up any interest to the property. Additionally, if the property was foreclosed and you had first refusal rights, those rights would have been extinguished with the foreclosure. First refusal would have given you the right to purchase the property if your ex-wife put the house on the market, it does not carry over to a bank's sale of the property. However, as a co-signer, you should have been notified when the property went into foreclosure and given the opportunity to bring the house out of its delinquency, were you not?

He stated that his ex-wife refinanced the house in 2005. Therefore he was no longer a co-signer.

 

[NC Aggie]

He stated that his ex-wife refinanced the house in 2005. Therefore he was no longer a co-signer.

That's not what I comprehended but maybe the OP can clarify. I assumed the refinancing of the home he was referring to was the 1999 City Rehab Mortgage which he indicated would have expired in 2009. I thought he inferred that in 2005, he received payment (minus interest) of his ownership stake in the home?

 

[lostcause1]

The co-signing in 1999 was for the City rehab-loan, and the refinance in 2005 was only by the ex-wife. So, if the ex-wife passed away before the foreclosure was complete would the Joint Tenancy deed listed in both names give me any renewed interest in the title. I don't know why the Quit Claim Deed signed in 2005 didn't get recorded and was lost. I was never notified of any foreclosure or Sheriff Sale taking place.

 

[NC Aggie]

The co-signing in 1999 was for the City rehab-loan, and the refinance in 2005 was only by the ex-wife. So, if the ex-wife passed away before the foreclosure was complete would the Joint Tenancy deed listed in both names give me any renewed interest in the title. I don't know why the Quit Claim Deed signed in 2005 didn't get recorded and was lost. I was never notified of any foreclosure or Sheriff Sale taking place.

Your situation sounds a bit complicated and I would recommend speaking with an attorney in your area. I'm still of the belief that you should have been served with a foreclosure summons if you were still listed as a joint tenant. However, depending on the laws of your state the bank can foreclose on the interest of one party while leaving the other party's interest in tact. I would be curious to know if your ex-wife refinanced just her interest in the house or refinanced the property in whole. I'm assuming the latter and it's possible she could have provided the mortgage company with the quit claim deed as proof of sole ownership. You have to also keep in mind that just because a quit claim deed was not filed in court doesn't mean you automatically retain your ownership stake. Deeds are just proof of ownership or conveyance of ownership, not necessary unequivocal title to property.

 

[lostcause1]

Thanks for the good advice; I appreciate the help in my decision to now sign a new QCD and just forget the whole deal. I had long felt taken in the deal, since the changes essentially forced on me caused a future value loss over $60k.