What happens when the mortgage is paid off?

[PJ11]

What is the name of your state? North Carolina
My Mother left 6.5 acres of land in a Trust naming my brother and I as the only beneficiaries and equal successor co-trustees. The land has several rental units on it. There is a small mortgage on the property that we are paying on. It is too complicated to explain in detail and keep it short. The bottom line is that my brother has turned out to be a greedy deceitful S.O.B. He's lazy and hasn't had a job in 16 years ( he is 50 years old) He sponged off my parents while they were alive, making them pay all his bills, food etc., and he lives rent free on the property in a mobile home they purchased to get him out of their house. He thinks the entire property should be his and he should get all the income from it. He has managed to not only take the income on what is to be his side (a small road on the property was to be the dividing line) but had the surveyor move the division line across the road taking part of what should be mine (land as well as income). To top it off I have to pay 1/2 of the outrageous water bill because the line covers the entire area. I have tried paying only for the average of what my few tenants would use versus his, but he then won't pay and the city turns off the water and if it happens again they won't provide service at all because we are just outside the city limits. This is just a small sample of what I have had to deal with. I am so fed up with him that I began taking the overage I pay on the water bill and the rental income he is taking that should be mine, and deducting it from what I was paying on the mortgage---which brings my payment to zero. Of course, his response was to not pay his share, expecting me to end up paying it. After a few of months of the mortgage co. hounding him and threatening foreclosure he began to pay the entire monthly payment for fear of losing everything. He has paid it for over a year now (with a few threats to me once in a while) but knows he can't force me to pay. He is under the assumption that if he pays all the mortgage the property will be entirely his. The deed lists only our Mother (as Trustee) as owner. My question is: When the mortgage is paid off does the lender release the title in her name? They can't put it in his name (or us as heirs) can they? Also when the title is released what do we do? Can he automatically have his 'side' deeded to him or would I have to sign a quitclaim to him since it is really all one property and the division survey was only for the trust. If so, can I refuse to sign it? It may be the only way get him to give me back what should be mine. I can hold out because I own my home across town and have other income. Thank you for any response to my questions.What is the name of your state?

 

[tonydiaz77]

What happens when the Mortgage is paid off

To start Mortgage Entities never hold Title to your property. What they do have is the right to Foreclose on the Collateral (property) if the Loan is not paid as agreeded (Foreclosure) a right you gave the Mortgage holder whe you signed your Loan Docs. Once a Mortagage has been paid a Satisfaction of Mortgage( Release of Mortgage) is filed at your County Deeds. The title will remain as is. A title can only change when all parties on the deed agree to the change in writing ie Quit Claim Deed. I would call your County Deeds and verify this. Regarding the moving of the lines.You did say Equal Beneficiaries. I am not an Attorney but I would definitely have an Attorney look at the specifics of the language used naming your brother and you benificiaries (Is the road is the specified dividing line?). Bottom Line I would not let my Brother do this to me. I would explore all of my Legal options. The place to start would be any and all documents that specify the wishs of the Grantor regarding the land.

 

[PJ11]

Thank you so much for your reply. I am releived to know that the title can't be changed. The people at the county deeds office know the situation and have experienced my brother's 'tantrums' demanding that they put the property in his name. They definately don't like him. At least I know now that he can't somehow cheat me out of the entire property. The Title is in our mother's name only. I will try to keep this as short as possible:
Mother was in her 80's and had no Will or Trust. She wanted my brother and I to share the land, basically being partners, sharing equally in the income and expenses. We had always gotten along great and he was the last person I'd ever think would cheat me in any way. Brother and I decided it would be better to have seperate parcels. Mom agreed, as long as it was fair. As I said he is a lazy bum and demanded that he get more income because I have my Military retirement pay and my wife works (he has never married) and he has no other income. We came to the agreement that I would get the land on the left side of the road (about 1/2 acre more) and he would get the right side which had more rentals and more than double the income. We were not to receive our individual shares until the mortgage was paid off, until than we were to combine the income, pay expenses and receive equal net dispersions. The Trust lawyer knew this, we gave him a copy. Mom told the lawyer to do what we wanted and only returned to sign the Trust (4 inches thick!!). I found out later that none of the above was put in it. The property was the only thing she owned, there was no money. A few pages would have worked. Three months later (August 2000) my brother on his own had a survey made, having the division line go across the road through what was to be mine, giving it to him. He took it to the lawyer and I guess pages were made to put in the Trust like it was there originally. It says I get 'this parcel' and he gets 'that parcel'. Mom (nor I) had any meetings with the lawyer after the signing (May 2000). She did not authorize the survey or having it put in the Trust. I did not learn of my brother's deception until 6 months after Mom's death. He took the Trust, all papers regarding the property, tax returns etc. and would give me no information. Then he went ballistic because I got a lawyer. There is so much more he has done, but it comes down to the fact that his division is in the Trust. My only option is to keep him from getting any of it in his name. I'm fine with keeping it in the Trust. It says if he dies I get his side (he's too cheap to make a will). If I die my wife and daughters get my side, not him. Can he go to the deeds office after the mortgage is paid off and get a deed in his name for his side or do I have to sign a quit claim since I am co Trustee?