Post-closing question

[HomeGuru]

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?

**A: FACT- Mom is on title. Mom signed the mortgage.

 

[Samm1970]

A: FACT- Mom is on title. Mom signed the mortgage.

I know that already. You haven't answered the question. The fact that she signed the mortgage and is on title makes her liable for what?

 

[HomeGuru]

I know that already. You haven't answered the question. The fact that she signed the mortgage and is on title makes her liable for what?

**A: huh? What part of a mortgage don't you understand. I'll tell you what, let's have the writer post the name and number of the mortgage lender. Then you call and ask the lender what Mom is liable for.

 

[Samm1970]

In theory, could an attorney sue mom in the case of a foreclosure? Yes. So, perhaps you are right to a certain extent.

In practicality though, no lender/attorney is going to sue mom in the case of a foreclosure when she signed only the mortgage, not the note and received no consideration for the loan. It doesn't happen. In practicality all she loses is the home, which again, her intent is not to own it anyway.

Even a crappy attorney could defend mom if the lender were to decide to sue her in this scenario particularly since there is a quit claim deed of record signed prior to the mortgage and as aforementioned she received no consideration for the mortgage.

Do you agree with that?

 

[HomeGuru]

In theory, could an attorney sue mom in the case of a foreclosure? Yes. So, perhaps you are right to a certain extent.

In practicality though, no lender/attorney is going to sue mom in the case of a foreclosure when she signed only the mortgage, not the note and received no consideration for the loan. It doesn't happen. In practicality all she loses is the home, which again, her intent is not to own it anyway.

Even a crappy attorney could defend mom if the lender were to decide to sue her in this scenario particularly since there is a quit claim deed of record signed prior to the mortgage and as aforementioned she received no consideration for the mortgage.

Do you agree with that?

**A: if I was the attorney hired by the mortgage lender and the loan was in default, I would file the foreclosure action against both Mom and the writer.
The title report shows Mom on title and she agreed to the mortgage. As far as liability, would she want to be sued? And a foreclosure action would show up on her credit report and a lien check. How's that for liability.

 

[Ciarraine]

**A: if I was the attorney hired by the mortgage lender and the loan was in default, I would file the foreclosure action against both Mom and the writer.
The title report shows Mom on title and she agreed to the mortgage. As far as liability, would she want to be sued? And a foreclosure action would show up on her credit report and a lien check. How's that for liability.

HomeGuru, not disagreeing with the theory you advance, but wouldn't you order your own abstract of title if you were the foreclosing attorney, and file against the owners of record?

 

[seniorjudge]

HomeGuru, not disagreeing with the theory you advance, but wouldn't you order your own abstract of title if you were the foreclosing attorney, and file against the owners of record?

Whoever forecloses order a title report and includes everyone on the record.

Let me add my two cents worth:

Oftentimes, a person on title will NOT be allowed to sign the promissory note because they have bad credit.

That person, however, will certainly have to sign the mortgage.

If it forecloses and there is a deficiency judgment, the creditor will go after everyone who signed the note and everyone who signed the mortgage.

 

[Samm1970]

This really is news to me. I've been in the mortgage business 13 years, have attended hundreds of closings and I don't think this is the general understanding of most people in the industry - including title attornys & title closers.

I'm not questioning what you're saying. I believe what you say is true. I'm just a little surprised it's taken 13 years to learn this.

I guess it's true... you learn something new everyday. Thanks for hanging in there with me and thanks for the educateeeoooon!.

 

[seniorjudge]

This really is news to me. I've been in the mortgage business 13 years, have attended hundreds of closings and I don't think this is the general understanding of most people in the industry - including title attornys & title closers.

You must work in a very strange market....

 

[Samm1970]

Well it's predominantly democrats. Does that give you any clue? hee hee hee

 

[HomeGuru]

HomeGuru, not disagreeing with the theory you advance, but wouldn't you order your own abstract of title if you were the foreclosing attorney, and file against the owners of record?

**A: yes, that's what I stated.

 

[HomeGuru]

This really is news to me. I've been in the mortgage business 13 years, have attended hundreds of closings and I don't think this is the general understanding of most people in the industry - including title attornys & title closers.

I'm not questioning what you're saying. I believe what you say is true. I'm just a little surprised it's taken 13 years to learn this.

I guess it's true... you learn something new everyday. Thanks for hanging in there with me and thanks for the educateeeoooon!.

**A: you should see some of my foreclosure filings. There are cases where the Defendants in the foreclosure action are NOT on title.

 

[seniorjudge]

**A: yes, that's what I stated.

Even if they're Democrats?

 

[seniorjudge]

**A: you should see some of my foreclosure filings. There are cases where the Defendants in the foreclosure action are NOT on title.

...because they may possibly have some possessory or equitable interest in the real estate.

 

[HomeGuru]

...because they may possibly have some possessory or equitable interest in the real estate.

**A: boy, you must have had your Wheaties this morning.