Posted on: 18th Nov, 2012 05:07 am
I sold this house 12 years ago and bank added me a a defendent in foreclosure lawsuit because of error in legal description on warranty deed. In fact bank read a bad copy (too much FAXing/copying) of the deed - legal description is correct on deed. Have 20 days to answer summons. Can I handle this myself or should I hire an attorney and recover their fees in court? Is a motion to dismiss my name for the lawsuit appropriate in this case. Thanks for your help.
Hi Seller!
Welcome to forums!
It will be better if you could contact an attorney and take his help in this regard. He will let you know what actions you can take in order to sort out the matter. If your name is mentioned on the mortgage docs as a borrower, then you may be liable for the foreclosure and the deficient balance resulting from the property sale.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
It will be better if you could contact an attorney and take his help in this regard. He will let you know what actions you can take in order to sort out the matter. If your name is mentioned on the mortgage docs as a borrower, then you may be liable for the foreclosure and the deficient balance resulting from the property sale.
Feel free to ask if you've further queries.
Sussane
I contacted an attorney - the original deed and deed recorded at the county do not agree - so bank has the right to sue to remove my interest in the property.
I will end up with a foreclosure judgement but not any monetary liabiities .
I will end up with a foreclosure judgement but not any monetary liabiities .
Hi seller,
If your name is not on the mortgage, then it is quite true that you won't have any monetary liabilities for that property. However, there are chances that you may lose your ownership rights on that property if it goes into foreclosure.
Thanks
If your name is not on the mortgage, then it is quite true that you won't have any monetary liabilities for that property. However, there are chances that you may lose your ownership rights on that property if it goes into foreclosure.
Thanks
If I get this straight, the bank is foreclosing on the property and they sued you because you still have a property interest due to a faulty deed. Then, you shold quitclaim in favor of the bank and get dismissed out of the lawsuit immediately or else this could affect your credit.
would i file a quit claim deed or reformatiory deed?
then would i answer the summons asking to be dismissed from the lawsuit?
then would i answer the summons asking to be dismissed from the lawsuit?
Hi Guest!
Welcome to forums!
You can give a formal reply to the summons stating the fact that you are not liable for the mortgage payments as you're not a borrower of the loan. If you wish to transfer the property, then you can use a quitclaim deed. But it will be better if you could get in touch with an attorney before you transfer it and take his opinion in this regard.
Wish you a very happy Thanksgiving!! :)
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You can give a formal reply to the summons stating the fact that you are not liable for the mortgage payments as you're not a borrower of the loan. If you wish to transfer the property, then you can use a quitclaim deed. But it will be better if you could get in touch with an attorney before you transfer it and take his opinion in this regard.
Wish you a very happy Thanksgiving!! :)
Feel free to ask if you've further queries.
Sussane
If you have any questions, hire a lawyer. I would answer the summons since you only have a short time to do so. I would then execute and record the quitclaim deed. I would then set up a meeting with the suing attorney, explain the situation, give him the quitclaim deed, and demand that he file a request for dismissal with the court, or whatever the proper procedure is in your state to release you from the lawsuit. If he refuses, tell him you will hire an attorney and ask the court for attorney's fees when you win.
Problem is the bank will not accept a quit claim and wants to reform the original deed - they want to proceed with the lawsuit to remove my interest. Two foreclosure defense attorneys think it's a waste of money to fight this suit. The legal description on record is incorrect and bank will eventualy pervail. If anything appears on my credit I will have to explain I was not the borrower.
The quitclaim deed will remove your interest from the title as the bank wants. It's not up to the bank to accept the deed. Execute, file, and deliver it, and you are done. The bank is going to act in its own interest, not yours. They want a judgment that can't be questioned later. The civil lawsuit judgment will appear on your credit history and negatively impact it. I would do what I recommended, or contact a regular real estate lawyer, not a foreclosure specialist.
if it's past the 20 days summons answer period can filing a quit claim deed still be done?
Hi Guest,
If you have already received a summons, then filing a quitclaim deed won't be a good option in my opinion. Nevertheless, you should get in touch with an attorney and take his opinion before taking any decision.
Thanks
If you have already received a summons, then filing a quitclaim deed won't be a good option in my opinion. Nevertheless, you should get in touch with an attorney and take his opinion before taking any decision.
Thanks
It depends. I would consult with a lawyer immediately.