Posted on: 01st Jun, 2010 11:32 am
Hi, My mom and dad divorced. My dad signed a quitclaim deed to my mom for a house that they both owned with my auntie. I heard that banks sometimes try to foreclose when one of the people quitclaimed a deed but there is some law or rule somewhere preventing banks from doing it when it is due to a divorce. Is that true? And if so where can I look this law/rule up?
I just read on the internet somewhere that when one owner quitclaims a deed then the bank has the right to foreclose on the house regardless of how current the payments are. The bank say it is impossible to modify the loan without the quitclaim deed. But if a quitclaim deed gives them the right to foreclose on the home regardless of the circumstances then that is someting to worry about.
Hi,
There is no such law. However, as per my knowledge the best option for you would be to go for a short sale or re-finance. I would suggest you to consult with a good attorney to know detailed information and check out the best option for you.
There is no such law. However, as per my knowledge the best option for you would be to go for a short sale or re-finance. I would suggest you to consult with a good attorney to know detailed information and check out the best option for you.
Thanks, looks like somebody gave me the wrong information.