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deed of lieu issue

Posted on: 17th Mar, 2010 12:25 pm
Hello,

My mom lost her job and house is going through foreclosure. A deed of lieu is being worked, but my name was on original deed. It was quit claimed off over a year ago. Bank is saying they cannot do the deed of lieu unless I put my name back on deed. Deed of lieu can only be done using original deed information. Is this right? My name was also put on the foreclosure. I faxed to their attorney AZ tax records showing I am no longer on deed and am hoping to have my name removed from foreclosure.

Thank you for your help!
Hi deb,

"A deed of lieu is being worked, but my name was on original deed. It was quit claimed off over a year ago. Bank is saying they cannot do the deed of lieu unless I put my name back on deed."

Your name was on the property deed and you got it removed through a quitclaim deed. So, the property deed has long been changed in your mom's name, right? Whose name is on the mortgage?

In case your name is on the mortgage the lender would want you to have the title in your name before approving the deed in lieu. However, if your name is not on the mortgage, there should not be any problem even if the title is not in your name. In that case, your mom would be on both the mortgage and the property deed and the lender would not have any problem while approving the deed in lieu.
Posted on: 17th Mar, 2010 10:08 pm
Thank you. Correct, I am no longer on the deed and am not on the title. I can't get the attorney to take my name off foreclosure. They keep stating that they have to use the original deed for both forclosure and deed in lieu.
Posted on: 17th Mar, 2010 11:12 pm
to deb,

at the time the mortgage was taken, your name was on the property deed. though your name has been removed from the property deed, the original deed used to obtain the loan still shows your name. since the lender is using the original deed, your name will appear on the deed in lieu. however, the deed in lieu of foreclosure will not affect your credit scores in any way. as you are not on the mortgage, you are not responsible for the repayment of the debt.
Posted on: 19th Mar, 2010 12:56 am
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