Posted by MonicaFL on 8/31/12 8:04am
Msg #432622

Here's one for the books

My daughter-in-law has a female friend who is divorced. The friend's ex owns a house only in his name. The house is in foreclosure. He wants to QuitClaim the house over to her because she wants the house. Here is the kicker - The bank states they cannot find the original mortgage papers (husband was told that when Countrywide went under, one of the people there shredded a lot of mortgage papers) - Several banks stated that they would be "happy to refinance the mortgage" for her if she gets possession. How in the world can a bank put a house in foreclosure when there are no papers showing there was even a mortgage in the first place? Screwy huh! I told her to go check the records in the courthouse and see if she can find paperwork who is foreclosing on the house. Of course we all know about Countrywide and who bought them out so doesn't surprise me that they can't locate the mortgage papers. Just had to tell someone about this screwy deal. Thanks for listening.

Reply by Linda_H/FL on 8/31/12 8:29am
Msg #432624

I'm assuming he's not going to give it to her for free

Why not just do a contract for a sale or short sale? This way she buys it legitimately and the debt and/or deficiency is his problem, not hers. I would not go the Quit Claim route - I would only go Warranty Deed and let her secure her financing. And tell her to make sure she gets a title search done - this is not the type of deal she wants to pinch pennies - it can come back to bite her bigtime, rather than just the pinch.

(Not surprised about lost paperwork - my boss does foreclosure defense - the bank documentation, or lack thereof, boggles the mind )

JMO

Reply by dickb/wi on 8/31/12 8:05pm
Msg #432691

Re: I'm assuming he's not going to give it to her for free

she should make no moves with out getting a GOOD real estate atty to represent her!!!!!!!!!!!

Reply by Barb25 on 8/31/12 1:16pm
Msg #432655

Are you saying the mortgage was never recorded? n/m

Reply by MikeC/TX on 8/31/12 3:46pm
Msg #432666

If the mortgage was recorded, the county clerk has a copy of it. If they lost the note, however, it would be difficult for them to foreclose. Judges have been known to throw out foreclosure cases when the plaintiff can't produce the note.