Posted by ItsMe123 on 3/3/05 11:58am
Msg #23434

Weird Homestead Quit Claim

Signing tomorrow,. Recieved docs today. There is a quit claim for the wife. Well, we are a homestead state probably one of the strongest in the union. Well they want the wife to sign the mortgage only (no other security docs, TIL or RTC) and sign the quit claim. I am supposed to "write her into the mortgage" In the lender package (these are not borrowers copies) there is 3 copies of the mortgage in the package only one of which is stamped "certified true copy" and 2 copies of the note. I am to do all and notarize all 3 copies of the mortgage and have him sign both copies of the note. What do you think about the quit claim/ sign the mortgage but no RTC TIL thing?

Reply by Mary Pierce on 3/3/05 12:01pm
Msg #23436

If she is quit claiming her then why are they having her sign the mortgage?

Reply by Laura_CA on 3/3/05 12:11pm
Msg #23438

Mary, thats what I was wondering.

Reply by PAW_Fl on 3/3/05 12:14pm
Msg #23439

Not sure of what the QCD is for. Is it to take her off of title, change her name, add someone else to the title? And, even if she is QCDing herself off of title, depending on the states homestead laws (or acts, as in Florida), she still may have a vested interest in the property and therefore must sign the mortgage. Also, the mortgage may not have a QCD stipulation attached which means the mortgage may get recorded without the QCD being executed and recorded.

As for what a non-obligated spouse must sign is really up to the lenders and title companies to decide. In most packages, the only recording document is the mortgage or DOT (and riders), so the state would only want to ensure that the mortgage or DOT (and riders) are signed by all interested parties.

Reply by ItsMe123 on 3/3/05 12:23pm
Msg #23441

Property is currently vested as husband and wife. QCD is taking wife off title. TILA states that all people with a vested interest must sign the TIL. I don't get why they are having her QCD while still having her sign the mortgage but not signing the TIL. Makes no sense. It will actually give them a 3 year right of recssion. I just don't get it. Also the wife knew nothing of the deed when I called to confirm. I mentioned the QCD to verify that she would be present and she replied (relating to the QCD) "well my husband pays the bills" I am presuming she sees the QCD as "note" related doc rather tahn a title one. I really feel someone needs to explain to her what a QCD is but that is not my function here---I will explain alot of docs but I draw the line at docs that pertain to vesting, No Way Jose--

Reply by Mary Pierce on 3/3/05 12:30pm
Msg #23446

You know there might be the fact that they are still married that she would still have to sign the mortgage, etc. even though her name is being taken off the title. Funny in PA we have done quit claims when a couple is in the process of a divorce and the other party is refinancing the property to get the other person off the mortgage. I've had one instance where a woman was in the process of filing for divorce and was purchasing a property. Any property acquired after the separation date is not considered marital property but the mortgage company wanted her to have her soon to be ex sign the mortgage. PA is not a "community property" or homestead state so we fought for her to have her just sign the mortgage. His name wasn't even going on the deed, just hers. If he had to sign she was going to lose the deal because she didn't want him to sign and knew he wouldn't sign.

Reply by ItsMe123 on 3/3/05 12:31pm
Msg #23447

Title emailed

Just got an email asking me to have her to sign the TILA docs. I talked with them earlier about that. Not only do title companies need to know all of each of the states "ins and outs" but also think about TILA requirements. It must be difficult. Something I really wouldn't want to have to be responsible for. For them one common understandable human error puts them in a very vulnerable postion.

Reply by Julie-MI on 3/3/05 4:36pm
Msg #23503

As a notary, I believe if the wife does not know that a qcd will remove her from title, she had better know what she is signing. Part of a notary's job is to make sure the signer (generally)understands they are signing. If she thinks it is just related to bill paying, she could be under a presumtion that could have terrible consequences if her husband died. Yes, dower could previal, but why risk it?



One could argue that a QCD is an acknowledgement and if she thinks it's part of the bill paying process, I think the notary had better tell the woman she is REMOVING her name from the title. Simply saying that signing this document removes your name from title is not legal advice and she needs to be told. If you don't want to tell her, let the title company.

It's unfortunate that national title companies really have no clue as to the laws of the states they are licensed in.

Reply by PAW_Fl on 3/3/05 6:05pm
Msg #23512

Stating that "she will be removed from title" is UPL as that is stating a legal course of action resulting from the execution of the document. However, telling her that by signing a QCD she is no longer claiming (thus the Quit Claim) any interest in the property if she has any, would not be considered UPL as that is merely stating the purpose of a QCD.

A notary must ascertain that the signer of the document, in this case a grantor, full understands the implications of the execution of that document. If they don't, they need to seek legal counsel.

Reply by Julie-MI on 3/3/05 9:18pm
Msg #23544

"she will be removed from title" is a fact. The deed will be held in husband's name only.

Your quote: "Telling her that by signing a QCD she is no longer claiming (thus the Quit Claim) any interest of the property if she has any" is incorrect, because not only is Michigan a Homestead state, it is a dower state and by merely signing a qcd and removing her from title does not necessarily bar her dower rights even if she is off title. If hubby kicks the bucket, she still would have inheritance rights and would still have to sign the dower docs or the lien is not perfected.

The more I read the stuff on these boards, the more I am convinced that the public deserves to close in a title company and have everything explained to them.

I'm not going to play your UPL word games, Paul.

Reply by Ernest_CT on 3/3/05 11:13pm
Msg #23566

Paul: Would it be UPL ...

... to seriously advise the woman to consult an attorney re the document?

Julie: Paul does not play word games. He is trying to do The Right Thing by all parties. Back off.