Posted on: 11th Feb, 2008 11:22 am
I bought a house on contract of deed. The seller had me sign a quick claim deed in case I defaulted on the agreement. Three years into the agreement he wanted me to get bank financing on the home. When I didn't he got upset and filed the quick claim deed that I had signed 2 years earilier. I found out about this when I paid my taxes that it was in his name and mine was no where. I have been making mortage payment for a year before I found out. He claims he does not want the property back that we are still ok. What can I do to sure up my interest in this home. I don't want to pay for the house and than when it comes time to transfer the home in 10 years not be able to.
Hi Keith,
Welcome to the forums.
Probably your contract for deed does not state that you should go for bank financing after 2 years, right? Also, if you default, only then the lender should take action and not before that. But he has already made you sign the quitclaim deed. Where do you stay by the way? There are some states where only the grantor needs to sign the deed to give away property and here you are the grantor. So, signing on a deed without understanding the pros and cons could be risky for you; you may lose the home even.
Now, what the seller has done is, he has filed the deed which you signed. So, it implies, you have transferred property back to him via quitclaim deed. Probably the seller is making a wrong statement here by saying that he does not want the property. I mean why did he file the deed? please have a straight talk to him.
"I found out about this when I paid my taxes that it was in his name and mine was no where"
Probably he has notified the tax assessor that the property owner has changed and that's the reason taxes are showing in his name.
"I have been making mortage payment for a year before I found out" So did you actually apply and get the mortgage? because you've already said when you didn't contact any lender, the person got upset. So, just want to get clear on this part of your story.
The best thing is to get out of this situation by paying off the seller his dues. No use taking a mortgage on this property because there is confusion as to who's the current owner now that he has already filed the deed which you have signed. I know paying immediate cash may not be possible but if you have assets, please sell them and pay off this house or else who knows you'll come across more trouble in future.
Thanks
Welcome to the forums.
Probably your contract for deed does not state that you should go for bank financing after 2 years, right? Also, if you default, only then the lender should take action and not before that. But he has already made you sign the quitclaim deed. Where do you stay by the way? There are some states where only the grantor needs to sign the deed to give away property and here you are the grantor. So, signing on a deed without understanding the pros and cons could be risky for you; you may lose the home even.
Now, what the seller has done is, he has filed the deed which you signed. So, it implies, you have transferred property back to him via quitclaim deed. Probably the seller is making a wrong statement here by saying that he does not want the property. I mean why did he file the deed? please have a straight talk to him.
"I found out about this when I paid my taxes that it was in his name and mine was no where"
Probably he has notified the tax assessor that the property owner has changed and that's the reason taxes are showing in his name.
"I have been making mortage payment for a year before I found out" So did you actually apply and get the mortgage? because you've already said when you didn't contact any lender, the person got upset. So, just want to get clear on this part of your story.
The best thing is to get out of this situation by paying off the seller his dues. No use taking a mortgage on this property because there is confusion as to who's the current owner now that he has already filed the deed which you have signed. I know paying immediate cash may not be possible but if you have assets, please sell them and pay off this house or else who knows you'll come across more trouble in future.
Thanks
I'm sure he thinks you are OK because he owns the property and you are paying for it. NEVER give someone a quitclaim deed unless you are transferrring the property to them. You should have given him a Deed of Trust. In any event, the only thing you can do now is have him quitclaim deed the property back to you. Your only other option is to sue on the contract deed. Contact a local real estate attorney right away.
i dont see any mention of legal expertise being used in this chain of events.
at the very least, you showed very poor judgment in this entire transaction. your property seller may have perpetrated a fraud here by requiring the quit claim deed to begin with, and the subsequent filing of that deed.
property taxes are to be paid by whoever owns the property - clearly he owns the property once again, based on the taxing authority having billed him for taxes.
it is apparent you have not yet sought the advice of an attorney. i suggest you do so immediately.
at the very least, you showed very poor judgment in this entire transaction. your property seller may have perpetrated a fraud here by requiring the quit claim deed to begin with, and the subsequent filing of that deed.
property taxes are to be paid by whoever owns the property - clearly he owns the property once again, based on the taxing authority having billed him for taxes.
it is apparent you have not yet sought the advice of an attorney. i suggest you do so immediately.
