BEHIND IN PAYMENTS AND QUITCLAIM

I am about 4 months behind in my Mortgage, (owner financed)I suggested a deed in lieu of foreclosure, the owner is sending me a QUITCLAIM deed to sign and agreementt to pay the 4 months I am owing, will this protect me from them coming later for a defiency if they cannot sell to cover everything I owe

Bill Gulley

Real Estate Investor · Springfield, Missouri

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Jul 07 '10, 05:49 AM

Unless you signed some other agreement, like a lease, the note holder of a seller financed note, funded by equity, can not seek a deficiency judgment, just give him the quit claim and move on. Good luck, Bill

GANI ADEBOYE

Accountant · COLLEGE PARK, GA

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Jul 07 '10, 09:56 AM

I just got an email from the Owner with a revised Quitclaim releasing me from any deficiency upon disposition or sale ...and a separate agreement to pay off amount due of 4 payments.....that he will not record any lien or judgement

Bill Gulley

Real Estate Investor · Springfield, Missouri

5,635 posts
13 awards
100 influence

Jul 07 '10, 10:01 AM

Originally posted by GANI ADEBOYE

I just got an email from the Owner with a revised Quitclaim releasing me from any deficiency upon disposition or sale ...and a separate agreement to pay off amount due of 4 payments.....that he will not record any lien or judgement

OK, ask your attorney. Good Luck, Bill

Sam M.

Real Estate Investor · Kalispell, Montana

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Jul 07 '10, 03:22 PM

Sounds to me like the seller (note holder) is trying to pull a fast one on you. Defiantly seek the advice of an attorney as you may not need to pay anything in order to avoid lien/judgment.

Unless you just want to pay it and move on????

Bill Gulley

Real Estate Investor · Springfield, Missouri

5,635 posts
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Jul 08 '10, 12:48 AM

Good point Sam! I bet if you asked the lender for a few hundred bucks to move your stuff out and you'd give him a quit claim deed instead of foreclosing, in the end, I bet he pays you! Yourr lender needs to speak to his attorney. It's called "cash for keys" Good luck, Bill

P NW

· OR

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Jul 08 '10, 09:51 AM

Pay him the 4 months you owe him and walk away with your credit unblemished and no court dates to mess up your life in the months to come.

Why provoke a fight when the mortgage holder is willing to let you off easy?

Bill Gulley

Real Estate Investor · Springfield, Missouri

5,635 posts
13 awards
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Jul 08 '10, 10:43 AM

Hmmm, OK one more time. The mortgage was seller financed, the note holder, lender, seller can not seek a judgment against you with that type of a mortgage, he gets nothing but the property back. Chances are, he is not an institutional lender, individual can not report mortgage late payments to any credit agency, you must be a member to do so. All he can do is foreclose and take the property or accept the quit claim deed. And, if any lender accepts a quit claim, they can not seek a deficiency judgment, it's the property in exchange for the cancellation of the debt, that's all. Check with your attorney and see what he/she tells you. Good luck, Bill

GANI ADEBOYE

Accountant · COLLEGE PARK, GA

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Jul 08 '10, 10:57 AM

I just signed off the Quitclaim and had it notarized in the Bank,I will pay him what I owe over 4 months, and I will move out at the end of July and give him his keys

Sam M.

Real Estate Investor · Kalispell, Montana

572 posts
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Jul 08 '10, 11:24 PM

Originally posted by GANI ADEBOYE

I just signed off the Quitclaim and had it notarized in the Bank,I will pay him what I owe over 4 months, and I will move out at the end of July and give him his keys

I commend you for taking the high road. After all, you did sign the promissory note.

I hope you didn't just agree to something that you cannot perform. I have a few times in my life allowed someone to bully me into doing things I didn't have to do just because I was afraid.

Be well.

Bill Gulley

Real Estate Investor · Springfield, Missouri

5,635 posts
13 awards
100 influence

Jul 08 '10, 11:44 PM

Good deal, I agree with Sam, I usually default toward the underdog, owning up to your responsibilities is the best way to go every time. So long as you were not baited into the deal for this outcome.

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