Post-closing question

[timeshare]

What is the name of your state?What is the name of your state? NY

Initially purchased home in 1993 with mom. Refinanced in 2004 and we executed quitclaim deed and real property transfer report. Last month, during the process of securing a home equity loan, search disclosed that mom’s name is still on title. At home equity closing, mom signed mortgage, not note. Spoke w/county clerk; quitclaim deed and report are filed and recorded. Clerk could shed no light on how this was missed/overlooked during the search. I am also in possession of these documents. Query: can the home equity closing documents be amended or an addendum attached? In no way do I want my mother to be responsible for repaying this loan. Thank you.

 

[pojo2]

At home equity closing, mom signed mortgage, not note

What does this mean?

And why with issues outstanding did you go ahead with the home equity until this was cleared up?

 

[Samm1970]

Just file another quit claim deed transfering title from you and mom to you.

 

[HomeGuru]

Just file another quit claim deed transfering title from you and mom to you.

**A: and just how would that eliminate Mom from liabilty? She already signed the mortgage.

 

[Samm1970]

Mom didn't sign the note only the mortgage. What liability does the mom have by signing the mortgage?

 

[Ciarraine]

I'm assuming that when you say "Mom signed mortgage, not the note" you mean that your mother signed certain papers in the package that apply to title. These would include the Reg Z papers (Truth in Lending Act papers, Notice of Right to Cancel), the HUD-1, and Deed of Trust, and certain "company papers" that pertain to the issuance of title insurance to the lender, if any. The reason for her signing those is to allow a foreclosure to procede in the event of a default on a property in which she has a beneficial interest. If she doesn't have any rights to the property, no problem there. The note is what obligates you to the repayment of the loan. If your mom didn't sign that, the lender has no recourse to her for repayment, shouldn't be reporting on her credit report, etc.

In short, although the abstracter missed your QC deed, getting your mother to sign the title documents was only suspenders and a belt, and you should be just fine, anyway.

 

[seniorjudge]

Mom didn't sign the note only the mortgage. What liability does the mom have by signing the mortgage?

Was there a title insurance binder/commitment issued? If not, then why not?

 

[Ciarraine]

Was there a title insurance binder/commitment issued? If not, then why not?

HELOCs frequently do not require title insurance.

 

[seniorjudge]

HELOCs frequently do not require title insurance.

Then they are ignoring good advice which has been out there for decades:

http://www.ncua.gov/letters/Prior1996/E-LET124.html

 

[HomeGuru]

Mom didn't sign the note only the mortgage. What liability does the mom have by signing the mortgage?

**A: please go back to your real estate book and look up the definition of the word mortgage.

 

[Samm1970]

**A: please go back to your real estate book and look up the definition of the word mortgage.

I know the definition of the word. I still don't know what you're getten at? She'd lose the home in a foreclosure, yes. It doesn't appear her intentions are to own the home in the first place.

Can you explain to me what her liability is?

 

[Ciarraine]

IF she had an equity in the property (you told us she doesn't) AND IF you were to default on the line of credit, THEN she would lose her equity. That's her liability. That simple.

 

[Samm1970]

Ciarraine, this has turned into a conversation between HG and I. It appears you think you are answering to the original poster. It also appears that you and I agree that mom has very little, if any liability as a result of having signed the mortgage. So, now I'm just waiting for HG to explain what he means when he says

**A: and just how would that eliminate Mom from liabilty? She already signed the mortgage

 

[Ciarraine]

Apologies. You're right, I didn't realize that question was not from the OP.

 

[Samm1970]

HG, I'm waiting? hee hee hee