Posted on: 07th Feb, 2009 09:11 pm
few years ago, i co-signed on a property for my brother, muhammad, as he was unable to acquire an investment loan by himself. after a few months, he approached me asking me to sign a form (quit claim deed), that would clear me from the property, as the property was his afterall, and i was just helping him with the loan.the quit claim deed was filed with the cook county. afterwards, i found out that quit claim deed only removes my stake in the property, but the mortgage liability still shows up on my credit report, which now makes sense.
the issue that i have is that now each time i go for a loan, lets say buying new property or refinancing, i am asked about my brother's property and told to show that last 12 month's mortgage has been paid. the bigger issue is that in the last four years, unfortunately, so much has been changed between myself and my brother that we even do not talk. just to give me a headache, he even does not want to refinance (even if i pay for closing costs) and there is no way to get 12 month proof of mortgage payment from him as well.
is there any way, any hope, or anything i can do to have that quit claim deed voided ? or remove myself from having the liability ? or force him to legally provide me 12 month mortgage proof of payment so that i can provide it to my lenders if i need loans. he is really good about making payments on time, so that is not an issue for now. but, obviously, i do not know about future. secondly, it causes me issues when i want to get loans, despite having excellent credit scores. what are my legal options ?
the issue that i have is that now each time i go for a loan, lets say buying new property or refinancing, i am asked about my brother's property and told to show that last 12 month's mortgage has been paid. the bigger issue is that in the last four years, unfortunately, so much has been changed between myself and my brother that we even do not talk. just to give me a headache, he even does not want to refinance (even if i pay for closing costs) and there is no way to get 12 month proof of mortgage payment from him as well.
is there any way, any hope, or anything i can do to have that quit claim deed voided ? or remove myself from having the liability ? or force him to legally provide me 12 month mortgage proof of payment so that i can provide it to my lenders if i need loans. he is really good about making payments on time, so that is not an issue for now. but, obviously, i do not know about future. secondly, it causes me issues when i want to get loans, despite having excellent credit scores. what are my legal options ?
hi akash,
a refinancing would have solved the issue and you would have been able to pay off the debt without affecting your credit score. but, that is not possible in this case, as you've mentioned. another option is, you can persuade him to sign a novation deed, which will transfer your financial liabilities to your brother thereby making you free from debt. but given the state of relationship between you two, that might not be possible. but it's worth a try. it is very difficult to reverse a quitclaim deed. it's possible only if you can prove that you signed the deed under pressure or you were threatened to do so. but to be able to prove that will not be easy. you can consult an attorney in this regard, who i'm sure can help you explore some other legal options.
if you've further queries, please, do not hesitate to ask.
a refinancing would have solved the issue and you would have been able to pay off the debt without affecting your credit score. but, that is not possible in this case, as you've mentioned. another option is, you can persuade him to sign a novation deed, which will transfer your financial liabilities to your brother thereby making you free from debt. but given the state of relationship between you two, that might not be possible. but it's worth a try. it is very difficult to reverse a quitclaim deed. it's possible only if you can prove that you signed the deed under pressure or you were threatened to do so. but to be able to prove that will not be easy. you can consult an attorney in this regard, who i'm sure can help you explore some other legal options.
if you've further queries, please, do not hesitate to ask.