Posted on: 14th Jan, 2008 10:53 am
hello,
when i was 21, my parents used my credit to buyey wanted land they wanted to develop. we got into arguments and before i was forced to run away they forced me to sign a quit claim deed. theyve been paying the monthly, but mortgage will mature in 2 months and im scared they might not bea ble to pay it. i dont talk to them anymore. my credits still in jeopardy, how can i make sure they will pay it? don't they have to refinance it when they recorded the quit claim deed?
pls help! thanks!
ps theyve already started building a 4plex on the land
when i was 21, my parents used my credit to buyey wanted land they wanted to develop. we got into arguments and before i was forced to run away they forced me to sign a quit claim deed. theyve been paying the monthly, but mortgage will mature in 2 months and im scared they might not bea ble to pay it. i dont talk to them anymore. my credits still in jeopardy, how can i make sure they will pay it? don't they have to refinance it when they recorded the quit claim deed?
pls help! thanks!
ps theyve already started building a 4plex on the land
nigel, by signing a quit claim deed, you have ceded all your rights to that property to them. to answer your question about refinancing - yes, i suspect that the lender (whoever holds the mortgage on this property) would require that they refinance.
their not having refinanced is generally not a big deal, as long as payments are being made on as agreed upon in the mortgage documents.
i have to wonder why you think they may not be able to pay. that they are building on the land would seem to indicate they are doing well enough. is this a house that they will sell upon the completion of the construction? if so, less to worry about.
the only way to resolve this is to sit down with them, your lawyer and their lawyer and hammer out a solution.
their not having refinanced is generally not a big deal, as long as payments are being made on as agreed upon in the mortgage documents.
i have to wonder why you think they may not be able to pay. that they are building on the land would seem to indicate they are doing well enough. is this a house that they will sell upon the completion of the construction? if so, less to worry about.
the only way to resolve this is to sit down with them, your lawyer and their lawyer and hammer out a solution.
i think i might retract that last sentence. to reiterate, your quit claim gave them all your interest in the property. what you might resolve is negligible.
Hi Nigel,
What I can understand from your post is, you have quitclaimed your property rights to your parents and they are now building a house on the land. The problem is, they aren't paying for the mortgage. But they have utlized your credit, so that means you are the cosigner. So, if they don't pay and the loan is in default, the lender would require you to pay for it. Or else, it will take a hit on your credit report.
Thanks
What I can understand from your post is, you have quitclaimed your property rights to your parents and they are now building a house on the land. The problem is, they aren't paying for the mortgage. But they have utlized your credit, so that means you are the cosigner. So, if they don't pay and the loan is in default, the lender would require you to pay for it. Or else, it will take a hit on your credit report.
Thanks
What you can do is, make the balloon payment as required or else I doubt whether the lender will allow your parents to complete construction on the land against which he has offered a mortgage. The lender may be interested in selling off the land and getting back the money he's invested in offering the loan on such a land.
Good luck! There are potential mechanic lien issue on any refinance depending on state law.
You may have made a good choice leaving home! Problem is the mortgage YOU signed. Not sure if there are a lot of options other than foreclosure to clear title ... or a gutsy lender to refi
You may have made a good choice leaving home! Problem is the mortgage YOU signed. Not sure if there are a lot of options other than foreclosure to clear title ... or a gutsy lender to refi
The mortgage may still be in your name even if you quit claimed the property since that transfers ownership but does not have anything to do with the financing on the property. You will want to make sure they refinance the property in their name to pay off the balloon mortgage or pay it off in full.