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Quit Claim Deed During Re-Fi, and Judgment

Posted on: 24th Feb, 2009 06:09 pm
hey folks...we're in ny:

mortgage is currently in my name only but my wife is on the deed with me.

i'm trying to do a re-fi and also wanted to quit claim my wife off the deed.

equity now is who we are using for the re-fi.

i had advisd them at the begining about the quit claim deed and that my wife had a earnings withholding order just executed this january 2009 via a default judgment awarded to a collector in early 2008 (first we heard of this was via certified mail that had the earnings withholding order sent to us by the marshal's office this past january 2009)

i told equity now that we did a visit to the court house and also that a online check at the county clerk website showd no liens via a land record search but did show the judgment via a legal search, and they said ok...lets continue with the re-fi process, took a credit card for the appraisal, and had me sign the preliminary disclousers and fax that back to them, to get the re-fi rolling.

fwiw, i did not lock in on a rate and the appraisal came back fine for my loan amount.

today, all their alarm bells went off with the title search coming back and trying to get title insurance...they are now saying my wife's judgment and wage garnishment is a major issue but they are exploring options to continue with the re-fi.

is their any chance i can get this re-fi done?

is it the title company or the investor that equity now is using for my re-fi that is really giving them grief?

can i still quit claim my wife off the deed as she currently disputes the default judgment asking for validation of dabt and alerting the collector's attorney my wife wasn't properly served and we will do a order to show cause and seek to vacate the judgment.

thanks in advance
Hi mustang,

As Equity Now said they are exploring options there must be ways to carry on with the re-fi. Moreover, a wage garnishment judgement cannot place lien on the property as is evident from the fact that the county clerks website showed no lien. Thus I think the option of a quitclaim deed to take your wife off the title is still wide open.
Posted on: 25th Feb, 2009 12:24 am
Apologize if this shows twice, tried to reply before

Equity Now states when a default wage garnishment judgment is awarded in NY, it does get attached to the deed (I'm having my Real Estate Lawyer confirm this)

Their Title Company wants to hold in escrow twice the amount of the judgment monies till satisfied, in order to move forward with the re-fi.

I told them to put this on hold as we were never served properly and are starting the process to file a order to show cause and vacate the judgment.

Till then, can I still do a quit claim deed (to stop the potential for other default judgments) or do I have to wait till the judgment gets vacated?

If I were to have my wife as Grantor quit claim the deed to me as the Grantee, do I then assume responsibility for any judgements against her while she was on the deed or if I can do the quit claim deed now, am I responsible for the current judgment?

I understand as the sole Grantee, that the he real property continues to be encumbered or subject to the mortgage and as the Grantee, I'm responsible for paying the loan or obligation for the mortgage, but will this also now apply for any liens or attachements against my wife?

Thanks,


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Posted on: 26th Feb, 2009 02:18 pm
Hi mustang,

If the default wage garnishment judgement gets attached to the deed, your wife cannot quitclaim the property to you. She will have to wait till the judgement is vacated.
Posted on: 26th Feb, 2009 11:37 pm
i recently sold my home to find out 2 days before closing that i have a few judgements against it. can i quit claim deed it to a family member and continue with the sale?
Posted on: 07th Aug, 2012 09:53 am
Hi Vicky!

Welcome to forums!

As there is a judgment against the property, selling of that property can be considered as illegal. You should take legal opinion in this regard and then take any decision.

Feel free to ask if you've further queries.

Sussane
Posted on: 14th Aug, 2012 02:33 am
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