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Does a Quit Claim Deed transfer the Mortgage?

Posted on: 03rd Oct, 2007 08:12 am
my son and daughter-in-law signed a quit claim deed with a realtor in colorado on their house. the agreement was that they would pay the mortgage until september and then if the realtor did not sell the house, he would make the payments. they gave him all the keys and garage door opener. however, they have not been able to get in touch with him for the last 3 weeks and don't know what is going on.
No it does not obligate him. It just gives him temporary ownership of the house. If he doesn't make the payments the house will be foreclosed on. This happens more and more and these guys should be in jail. He probably just wanted a shot at making a quick buck and if he can't get it he will be gone.

Your parents are still responsible they need to contact an ATTORNEY IMMEDIATELY!
Posted on: 03rd Oct, 2007 09:10 am
Hello,

You cannot force the realtor to pay the mortgage as it is still in your son's name. Quit Claim does not transfer the mortgage. It was just the words of the realtor and you have no documents to prove that. If your son does not pay the mortgage regularly, the house will run into foreclosure thereby affecting his credit.

For any further information you may look here http://www.mortgagefit.com/discuss/about2007.html
Posted on: 03rd Oct, 2007 09:22 pm
Unfortunately, both of these responses are correct. They signed ownership of the house to the Realtor, but he is in no way obligated to pay the mortgage. They best recourse to hurt this Realtor would be to go after his/her license if they don't follow thru.

In Indiana there is a slush fund that we all have to pay into, so that when a Realtor is sued and loses there are funds for the plaintiff if the Realtor is unable to pay. At the very least, this individual should not be allowed to practice.

I would agree in hiring an attorney immediately, but you may be able to save others from this type of problem and be more effective approaching your local licensing board.
Posted on: 03rd Oct, 2007 11:52 pm
hi james,

what's a slush fund?
Posted on: 04th Oct, 2007 05:44 am
Sorry, I was using slang. There is an account established by the Indiana Real Estate Commission (which is actually called "The Real Estate Recovery Fund") that all Indiana Licensees must pay into and keep the account to a minimum balance to protect our clients in case of fraudulent acts by an agent.

http://en.wikipedia.org/wiki/Slush_fund

You can visit this site and download the .pdf, in chapter 7 of the regulations you can read about the recovery fund.

http://www.ai.org/pla/bandc/estate/statrules.html
Posted on: 04th Oct, 2007 08:40 am
Very good point James.

I thought about it and you may want to contact his principal broker as well. Every real estate agent must work for a licensed broker. Unless he is a broker himself. What company does he work for?
Posted on: 04th Oct, 2007 10:05 am
The Realtor works for a company called Real Pro. My son called the broker and he said he would take care of it. We also called the Real Estate Commission of Colorado and they assigned an investigator to look into the matter.
Posted on: 04th Oct, 2007 10:13 am
Good I hope for the best.

There are many variations of this type of scheme. Sometimes the crook says they will make payments, sometimes they will offer to purchase (this one really makes me laugh because why wouldn't they just purchase it then)(side note: sometimes this can be a legitimate offer like when a listing agent offers to buy it so the seller can buy a new home), sometimes they offer to assume your mortgage, no matter what always remember this...IF IT SOUNDS TO GOOD TO BE TRUE IT IS.
Posted on: 04th Oct, 2007 10:45 am
Thanks for the info James. I'd surely go through the pdf.
Posted on: 05th Oct, 2007 02:02 am
my wife, her sister and her husband are on the deed of a property that we live at but the loan is in the sister and her husbands name unfortunatley a fire occured and substanial damage was the result the property was under insured but as luck would have it i am a carpenter so we got all the repairs done but now my dear sister inlaw is demamding that we get the mortgage in our name imediatley but at this time it will be very difficult to secure a loan with a reasonable rate because of credit history the sis wants to list the property with a realator is there a solutiin to this delema with a fair outcome open to all leagal suggestions
Posted on: 30th Sep, 2008 04:13 pm
Hi Paul!

Welcome to the Forums!

As the property has your name, you can go for a refinancing. Speak to lender if he can offer refinancing to you and also check what rates are available. If everything suites you, can can go for it. If this is not possible then I don't think there is much scope and the sister can list the property for sale.

Feel free to ask if you have further queries.

Sussane
Posted on: 01st Oct, 2008 12:05 am
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