Mortgage Quit Claim Deed issue!

[Blueshirts]

What is the name of your state (only U.S. law)? Illinois

I owned a house with my sister for about 13 years. I have since moved out about 6 years a go and have not been financially obligated to make payments. It was agreed I would keep my name on the house until she and her now husband would be able to qualify for refinance without my name attached. Trying to do the right thing for her and the kids

Well fast forward 6 years later after I moved out and they still have not done this. They stated they are falling behind and need help. I loaned them money to make a payment to bring them only one month behind.

I also signed a Quit Claim Deed, washing my hands of any interest in the property. I was also under the impression this removes me from the mortgage. This is not the case. The bank has stated I need to "qualify" for assumability or assumption paper work. Should I contact a lawyer about the deed I signed?

My credit is going down the tubes!!!!!

 

[tranquility]

I also signed a Quit Claim Deed, washing my hands of any interest in the property. I was also under the impression this removes me from the mortgage. This is not the case. The bank has stated I need to "qualify" for assumability or assumption paper work. Should I contact a lawyer about the deed I signed?

Contact him regarding what?

You gave sister your share of the property. That was a mistake. The only real right you have now is to pay the mortgage and sue the sister. At least it will stop the decline in credit.

 

[Blueshirts]

About the deed. As to if there are any legal ways to remove me from the loan.

I realize I waived my right to any interest in the property. I walked about from at least $15k when I moved out. The market fell out and now there is essentially no equity in the house.

Sue my sister for what? Failure to pay the loan as agreed?

I'm just freaking out about my credit now.

 

[tranquility]

About the deed.

What do you want him to do about that?

As to if there are any legal ways to remove me from the loan.

Certainly. You can pay off the loan or get the permission of the bank to have sister assume the loan (Very unlikely) or have sister refinance in her name only.

Sue my sister for what? Failure to pay the loan as agreed?

Not yet. You would have to pay the loan off first and then sue for contribution.

I'm just freaking out about my credit now.

If YOUR loan is not being paid, that is a good worry.

 

[Zigner]

About the deed. As to if there are any legal ways to remove me from the loan.

There are legal ways to remove your responsibility from the loan - and you know it.

What you want to find out is if there are legal ways to remove your responsibility from the loan without the loan actually being satisfied. The answer to that is NO. (Unless, of course, the bank agrees to let you walk, which won't happen.)

 

[Blueshirts]

Thanks for all the quick responses.

Well sadly I can not afford two places at once and I have not made a payment on this property in 6 years. Minus the money that was given to her to make a payment most recently within the last month.

They applied for modification and were denied. They are now trying to apply for refinancing but I want to expedite this.

All of the paperwork (applications, stubs, payment confirmation) is still being sent to my address and not the associated property.

So essentially I have two options: Pay the loan or have my sister and her husband "assume" responsibility.

Thanks!!

 

[nextwife]

Thanks for all the quick responses.

Well sadly I can not afford two places at once and I have not made a payment on this property in 6 years. Minus the money that was given to her to make a payment most recently within the last month.

They applied for modification and were denied. They are now trying to apply for refinancing but I want to expedite this.

All of the paperwork (applications, stubs, payment confirmation) is still being sent to my address and not the associated property.

So essentially I have two options: Pay the loan or have my sister and her husband "assume" responsibility.

Thanks!!

Can you get them to agree to sell it? That would get you off the mortgage.

 

[Blueshirts]

Can you get them to agree to sell it? That would get you off the mortgage.

This is not an option at this time in their mind. I would've loved to have that happen 6 years a go and get my money. Being the nice guy in this situation and I have been burnt.

I'm pretty much screwed until they can qualify for modification / refinance.

 

[HomeGuru]

OP. contact an attorney as you can file to force the property to be sold.

 

[Blueshirts]

OP. contact an attorney as you can file to force the property to be sold.

Thank you for this. By chance do you know what specific law or right I leverage for this? Is it because I am still the primary borrower on the mortgage?

 

[Zigner]

Thank you for this. By chance do you know what specific law or right I leverage for this? Is it because I am still the primary borrower on the mortgage?

The attorney will be able to advise you...

 

[tranquility]

OP. contact an attorney as you can file to force the property to be sold.

I'm of the same mind as the OP on this, what is the cause of action? This is not a partition because that allocates between owners.

I'd say the OP has about the same rights at this point as a co-signer.