Posted by Charm_AL on 8/28/06 12:13pm
Msg #141471

my confusing signing Friday night

Son and Mother at closing table. apparent split signing to me, had Dad's docs up from FL and all ready to sign. This is a refi w/HELOC. Originally Mom &Dad owned house, quit claim their interest over to son in July.
Now son wants to get it in his name only, so he is under the impression that he is getting a loan and line, cannot get financing unless Mom co-signs.

Dad is on all the docs, and the the first and second mortgage as a co-borrower. Son says no, he's not supposed to be on anything, in fact the loan company made him think that the paperwork started in FL was to have his Dad sign off on everything. No where did I see any clue of what he thought this was. Son and Mom thought they were the only borrowers.

I stated "You have a loan pkg here which is a refi and a line of credit." Needless to say they wouldn't finish signing. I could not get ahold of Anyone of course. Wouldn't the quit claim have gotten Dad/Mom off? Why would dad be signing now as a borrower? Who screwed up in the thought process? I was/am confused. The mother has a very hi C score. The only thing I could think on the spot was that they were still married, hence the so borrowers being both?

Reply by celeste/ca on 8/28/06 12:42pm
Msg #141480

No, a quit claim does not get the mom and dad off loan. They are still responsible. My husband did a quit claim on his first house 20 years ago with a friend. Very naive he was! His dad cosigned on the loan, and then they quit claimed it in my husbands friends name. Well, my fathers name was still on the loan, and if he was late, my father in law was still called. It was a nightmare, never quit claim, you will still be responsible.

Reply by MelissaCT on 8/28/06 12:46pm
Msg #141481

That's true, good point. QC only removes interest in the property, not responsibility for the payments...I see, says the blind man.

Reply by Ernest__CT on 8/28/06 1:29pm
Msg #141501

Remember our role!

We cannot give legal advice. We are not there to sell the loan, other than to reinforce the fact that the right to cancel (if any!) will give the borrower extra time to review and ask questions.

You got caught between a rock and a hard place. Not your fault!

Reply by Charm_AL on 8/28/06 2:11pm
Msg #141514

Re: Remember our role!

Ernest, I would not give advice, nor sell ANY loan. I was simply wondering what happened for my own edification. The RTC was a moot point.

Reply by Diga2Lin/FL on 8/28/06 5:49pm
Msg #141593

Charm - what happened to July Quit Claim into son?...was it not recorded? - that should have taken both Mom AND Dad off title....the refi will take care of their liability for the mortgage as it will have to be paid off at disbursement.

Sounds like someone ran a title search, picked up Mom and Dad on title, threw son on loan docs and WHALLAH...we have a closing...maybe it should have been put through as a purchase and HELOC.

But it's true - it's not our problem - it's too bad though - got you stuck in the middle.

Reply by celeste/ca on 8/28/06 5:55pm
Msg #141598

Again, mom and dad will still be responsible for the loan. A Quit Claim does not give up responsibility to borrower. The parents name is still on the loan, they are who originally purchased. If parents want off, then what Diga2Lin said, the son would have to outright purchase it from his parents.

Reply by Diga2Lin/FL on 8/28/06 6:10pm
Msg #141608

She said in her original post " Originally Mom &Dad owned house, quit claim their interest over to son in July". That's why I asked what happened to that Quit Claim Deed - the house was his in JULY..yes they are still responsible for the loan but the refi would cure that with the payoff.