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Can you transfer possesion of a deed while still retaining mortgage in your name?

Posted on: 04th Jun, 2009 08:27 pm
Lisa purchased home from Frank for $750,000 and takes a loan for $500,000. At the closing Frank signs the deed over to Lisa. A few mintues after Lisa signs the Deed back to Frank. Franks now owns property Lisa is stuck with a 500,000 mortgage.
Is this legal? Can the title closer/notary of deeds be held liable?
hi davidrachmanov

why did lisa sign the deed back to frank? the title closer or the notary of deeds will not be held liable for this. it is lisa who is liable for this. she shouldn't have signed the deed when she had already taken a huge loan of $500,000 using that property as collateral. if frank does not refinance the loan, she will be struck with it.

thanks.
Posted on: 05th Jun, 2009 02:00 am
She is saying she was not made aware of what she was signing. So now the loan is in default and she can't sell the property.
Can the bank foreclose on the property if the title/deed is not on her name?
If the answer is no, what can or will the bank do?
My assumption is that a bank and any lender for that fact will never lend money to someone if they can simple transfer the deed.
So is the transfer of the deed back to Frank legal?
Posted on: 05th Jun, 2009 07:46 am
it can be seen as a fraud as Lisa has signed the deed.
Posted on: 05th Jun, 2009 08:39 am
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