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QUIT CLAIM NIGHTMARE

Posted on: 12th May, 2010 05:11 pm
my son-in-law and my sister co-signed on a mortgage on a house for my son-in-law, wife, and 3 children to live in. my sister paid the downpmt. and it was her credit that secured the loan. the idea was that they would make the payments and take over the loan in their own name only.

my sister had son-in-law and his wife sign a quit claim deed transferring their rights to the property over to my sister if they failed to refinance within one year. the paper containing the qc deed contained an agreement between the parties that the result of failure to refinance would be eviction of son-in-law and family from the premises. the qc deed was properly signed and notarized.

after signing the qc deed, son-in-law, wife, and sister walked over to another building where the mortgage closing was executed without revealing the qc deed to lender's agent, but without intentional fraud.

after two years, son-in-law has been unable to refinance (turned down 3 times) and is trying to obtain assumption of mortgage on advice of lender. sister refuses to permit assumption application to be filed (will not sign or fill out financial part). sister is demanding eviction based on reasoning that son-in-law defaulted by failure to obtain refinancing and is now a tenant. she has served them with papers three times, which they refuse to sign.

sister has big money problems and needs the property off her credit since it is preventing her from refinancing her own mortgage on her house of residence. she will not allow son-in-law to put home on market since she says it is not his home. meanwhile he has continued to make every mortgage payment on time.

son-in-law is faced with being evicted and still owing mortgage payments. he will surely be unable to obtain another home with either a default or a mortgage already on his credit. he and his wife just want to be allowed to sell, but sister will not allow it. her idea is that she will let house go back to bank.

can he somehow get the quit claim deed invalidated? it was recorded about a year and a half after being notarized when sister started trying to evict.

thanks.
Hi dorob,

If the deed has been recorded, then it cannot be invalidated unless your sister signs over the property to your son-in-law. Your son-in-law will have to convince your sister to list the property in the market. If they get a good buyer, then they will be able to sell off the property and get rid of it.
Posted on: 12th May, 2010 09:34 pm
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