Posted on: 14th Jan, 2010 09:50 am
our mortgage-free home was listed as an personal asset for a collateral loan for mr on another building owned by mr. but no lien put on the home. home is in both names but mr would like to transfer home to mrs so creditors can not lien home in future. should this be done with a quit claim deed or warranty deed? does deed have to be recorded in illinois to be valid?
Hi Guest!
Welcome to forums!
If the property has been used as a collateral for the loan, then there has to be a lien on the property. In that case, though the husband transfers the property to the wife, the lender/creditor can place a lien on it in the future. You should also note that if the husband transfers the property to the wife to save it from the creditors, then it can be considered as fraudulent. The husband can even be penalized for doing so.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If the property has been used as a collateral for the loan, then there has to be a lien on the property. In that case, though the husband transfers the property to the wife, the lender/creditor can place a lien on it in the future. You should also note that if the husband transfers the property to the wife to save it from the creditors, then it can be considered as fraudulent. The husband can even be penalized for doing so.
Feel free to ask if you've further queries.
Sussane
The building is held as collateral for the loan so there is a lien on the building. No change of title is being taken on the building.The home was listed as a personal asset for Mr but not held as collateral for the loan. Can home be quit deeded from Mr and Mrs to Mrs without penalties? Does deed have to be recorded in Illinois to be valid?
Hi Beverly,
You post seems to be quite contradictory - once you state that "The building is held as collateral for the loan so there is a lien on the building" and then again you state that "The home was listed as a personal asset for Mr but not held as collateral for the loan."
You should note that if there's a mortgage on the property, then it will be considered as a lien on it. If the mortgage and the property are solely in the husband's name, then if he transfers the property to the wife, she'll have to refinance it or the lender may call the loan due.
You post seems to be quite contradictory - once you state that "The building is held as collateral for the loan so there is a lien on the building" and then again you state that "The home was listed as a personal asset for Mr but not held as collateral for the loan."
You should note that if there's a mortgage on the property, then it will be considered as a lien on it. If the mortgage and the property are solely in the husband's name, then if he transfers the property to the wife, she'll have to refinance it or the lender may call the loan due.
Sorry for the confusion. The building and the home are two separate properties and locations. The building has the collateral loan for Mr and the home is owned with no mortgage or loan by Mr and Mrs. Does that clarify the matter? Thank you.
Hi Beverly,
If the husband is not past due on any of the debts, then he can transfer the home to his wife. However, if he is already past due on the debts and then transfers the property to her in order to save it from liens, then it can be considered as a fraud. Thus, he can be penalized for it.
Thanks
If the husband is not past due on any of the debts, then he can transfer the home to his wife. However, if he is already past due on the debts and then transfers the property to her in order to save it from liens, then it can be considered as a fraud. Thus, he can be penalized for it.
Thanks
Thank you. Does the signed and notarized quit claim deed have to be recorded in the state of Illinois to be in effect?
Hi Beverly!
Welcome back to forums!
The deed needs to be notarized and recorded at the county recorder's office where the property is located. This will make the deed valid.
Sussane
Welcome back to forums!
The deed needs to be notarized and recorded at the county recorder's office where the property is located. This will make the deed valid.
Sussane