Posted by Linda Juenger on 5/8/12 11:33pm
Msg #420342

What/if any ramifications is this going to cause

Very long story but here's what happened: Get docs, 2 names on mortgage, both as single people (a man and woman). Confirm with her that he will be there also. She says he'll be here but not signing. She then tells me that they went to the court house on 5/2 and filed a QCD taking him off title. Docs still have his name on it. This is 5/8 so obviously not enough time had passed for this to be caught by title (I don't even think title knew they did this). In the meantime, they change their mind at the table and he wants to sign anyway. He signs the mortgage.

What could, if anything, happen when they go to record this mortgage and the QCD is filed taking him off but he signed the mortgage anyway 5 days later? Will it record with him off or on or not at all?

By the time we are done (there were many other issues), they really don't care. Then they say they are going to the courthouse to file another QCD adding him back on. Make up your mind folks.
Just curious on what is gonna happen with this and would like to follow it at the court house to see what actually recorded.

Reply by HisHughness on 5/8/12 11:41pm
Msg #420343

I think that if there are any changes to that title...

...after money has been loaned on the property, the borrower is going to get her/his loan called. Does the phrase "Get a lawyer" resonate with those people at all.

Reply by Linda_H/FL on 5/9/12 4:49am
Msg #420347

I would have notified title/ss about this before I even

printed the docs - I'd almost bet this would have been a postponement and redraw.

Reply by BrendaTx on 5/9/12 6:11am
Msg #420348

Balding

If the tc brings the title search up to date, they'll pull their hair out before recording.

Put a bug in title's ear so that they can scurry down to the recording office, find out what is going on, and notify the lender before the signing and/or loan funds.

Reply by James Powell on 5/9/12 6:42am
Msg #420351

There are two areas where there could be ramifications.

From a recording perspective and title, there will not be any real ramifications. The mortgage is simply an instrument of record showing that interested/vested parties acknowledge the existing of the lien. The obligation to pay is controlled by the note. A non-vested person signing a mortgage may raise eyebrows and questions for title, but no real problem. The biggest question wouldbe if a name was seen on the mortgage that does not appear anywhere else in the records. Then title will be wondering why the person signed and if there was an unrecorded/misfiled instrument somewhere giving them an interest. As a side note - there will not be any issues recording the mortgae as long as it meets the recording requirements. The Register of Deeds does not do any searching to make sure that the proper parties are on a document to record it.

The other area is the actual loan. That is up to the mortgage company. Again, as long as the note is properly executed I don't think the mortgage company is going to care. The property is properly secured regardless of the interest held by the two parties at the time of execution. There may be an obscure loophold the borrowers could try to use to invalidate the lien, but that would be highly unlikely.

Reply by James Powell on 5/9/12 6:45am
Msg #420352

Forgot to add -

The other posters are correct, though. The hiring party should be made aware of what you have found out. That way they are not caught completely off guard. Since it could affect the loan to some degree, the lender may have second thoughts about proceeding.

Reply by Linda Juenger on 5/9/12 7:37am
Msg #420357

When the borrower told me this when confirming with her that they did a QCD on 5/2 taking him off the property, I immediately called the hiring party. I was called back and told that he is ok signing it and to just go. So I did. The borrowers and I talked about this when I got there and the borrowers didn't care. I said ok. Not my business and not my problem. They said they would just go back to the courthouse and do another QCD adding him back on. Ok. Believe me, everyone is aware of this.

Reply by Shoshana/AZ on 5/9/12 9:27am
Msg #420359

Then why worry?

It's not your problem. You did what you were supposed to do.

Reply by Linda Juenger on 5/9/12 9:50am
Msg #420363

I'm not worried Shoshana. I was just merely asking what

could happen at recording if anything.

Reply by MW/VA on 5/9/12 10:19am
Msg #420367

I'm guessing it might not record if someone catches it.

Why would they file the QCD and then have him sign anyway? Sounds like everyone is confused, including the lender & tc.

Reply by Linda Juenger on 5/9/12 10:45am
Msg #420377

Marilyn, NO ONE knew they filed a QCD until I asked the

borrower when I confirmed the appt that the other person listed on the mortgage would be there also. That's when she told they did the QCD taking him off on May 2. They didn't inform the lender or title. I informed the hiring party. Then borrowers said they didn't care, they wanted the loan and he would sign it anyway.

I don't think these people know what they want. I was told by hiring to let him sign so that's what we did.

Reply by MW/VA on 5/9/12 11:38am
Msg #420384

That's interesting. I wonder if they understood they

couldn't just change vesting if he's on the loan. I'm familiar with this, because I went through a divorce, my x's name was removed from the property, and I had to get a loan in my own name. You can't just take someone's name off of a loan. It's usually the lender & tc that handle the QCD for those reasons. Interesting scenario, but it's their problem, because they did that without the lender's knowledge. It could be a big problem for them.

Reply by Bob_Chicago on 5/9/12 11:33am
Msg #420381

In many jurisdictions, so long as a documnent is in

recordable form, and the approriate fee is paid, the recording officer neither knows nor cares as to
the state of the ownership of the property. The document will be recorded and the parties , including the
title company and lender, will sort it out later.

Reply by Saul Leibowitz on 5/9/12 1:01pm
Msg #420397

Re: In many jurisdictions, so long as a documnent is in

In some of our midwestern jurisdictions, if the document is in recordable form the Recorder of Deeds or Register of Deeds is required to record it.

Reply by Linda Juenger on 5/9/12 2:16pm
Msg #420411

Re: In many jurisdictions, so long as a documnent is in

I kind of thought the same thing Bob and Saul. I'm anxious to see what comes of this, but may never know.

Reply by BrendaTx on 5/9/12 7:31pm
Msg #420447

My point was meant to be that if the TC has done a

bring down as they should have, (OR since LJ has notified them) they will notify lender that there has been a recorded document that could make a teeny-weeny bit of a smudge on the loan's resale value. I propose that the way to fix it would be to record a correction conveyance instrument to clarify it all for once and for all, then to record the mortgage. That's from my years working in under a lender's attorney...in Tejas, of course.