Posted by Melody on 7/24/05 7:53pm
Msg #54358

QCD - lender - death question. PAW? Hugh?

No, this is not about the quick and sudden death of a loan officer.
Though by the end of Monday, I will probably want to order a hit on some weasel LO.

I was asked to do a deathbed Will, POA, and Quit Claim Deed notarization this afternoon. (Yes, I made very certain the woman knew exactly what she was signing. Her best friend read her all the documents in front of me as I watched and asked questions to see understanding and agreement. I had the second witness watch all this, too.)

I remembered the dying woman from a signing I did around 2 years ago: a Mega-Bank heloc. She was an elegant and proud elderly woman. Today she was a whispering ghost. I have no idea how she managed to drum up the strength to sign the papers. The attorney had also provided "Sign by X" documents, just in case. But Mother wanted to sign her name.

All the family and several lifelong friends were there today. The woman wanted her house to go to her adult son, hence the QCD. The woman and son are personal friends with someone at the local branch of Mega-Bank. Mega man advised the family to have the woman sign a QCD for the house.

It is all out of my hands but I am very curious how the paperwork will play out.

The heloc loan was made to the woman with the house as collateral. What happens to the loan when the son suddenly owns it? Does the lien stay attached to the house until the house is sold or the bank decides to foreclose? When she dies this week, does the loan automatically transfer to her estate, in which the son is main beneficiary and executor?

And does the property still transfer to her son even if she dies tonight, before they can record the QCD at the courthouse Monday morning?

If anyone is waiting for eDocs and wants to share, I would be interested to read the answers.

Thanks!

Reply by Lee/AR on 7/24/05 8:21pm
Msg #54370

I'm just curious to see if I'm right or wrong... here's my guesstimate:

"The heloc loan was made to the woman with the house as collateral. What happens to the loan when the son suddenly owns it?" Still there.
"Does the lien stay attached to the house until the house is sold or the bank decides to foreclose?" Yes
"When she dies this week, does the loan automatically transfer to her estate, in which the son is main beneficiary and executor?" Yes.

"And does the property still transfer to her son even if she dies tonight, before they can record the QCD at the courthouse Monday morning?" Yes. Recording is merely making it public knowledge.

OK, Hugh... how'd I do??? Obviously... I am not a lawyer, yada, yada, yada.

Reply by TitleGalCA on 7/24/05 9:19pm
Msg #54395

Agreed to Lee's post with one exception/perhaps a question - there could be a due-on-sale clause in the loan docs that the son might have to address.

Sounds like you did great.

Reply by PAW_Fl on 7/24/05 9:44pm
Msg #54398

Totally agree with Lee's and TitleGal's responses. Of course, a lot of this is simply conjecture that Probate will have to unravel, depending on a lot of different variables.