Janeese Jackson, Principal Broker
Real Estate Resource, Portland, OR
Is TN a community property state? This may matter, or it may not. Yours is a very narrow legal question whose answer may depend on TN law. Right now, I would contact the VA and tell them of your claim and send a copy of your quitclaim. At the very least, it should create a cloud on the title and forestall any title transfer. Go to VA's website and just keep clicking away unti you find a good link. They will be more responsive than you might imagine.
You may be able to work something out with them but if you are not a vetrnan then you could be foreclosed on instead of your step father because they could say it was wrongfully transferred to you. Your best bet then is to find another bank who will pick up the VA loan and let you make payments to them.
Never ever sign anything without an attoreny looking it over. They can let you know whether you are being shaefted or not.
He can not do a deed in leu and I don't think he understands that by giving up the house he is snubbing his nose at the VA and they are unlikely to give him another loan ever.
I see that you were inquiring in October of 2010 and now we are in August 2011. I sincerely hope that everything turned out Okay for you.
This is a difficult question with out getting additional info.
Based on what you have in the question here is what I would say (I would first advise you to talk with a real estate attorney) now if you have a quit claim deed that has the property in your name and your step fater is still carring the loan to the property then he can not do a deed in leu, he can foreclose on you on the home only of you are not paying according to the contract (if youhave one) he does not own the home based on title. With that said, if the loan he has on the property has a due on sale clause in his financing then there are possible other issues that need to be addressed.
If I was you I would contact an attorney and get further clarificatio on this.
Hope this helps.
I know we'd all like to help, but we don't quite understand the situation.
That is diffierent that lender might not accept the quit claim and will have right to declare the owner in default and choose to demand entire loan balance be paid in entirety.
If you quit claim is recorded. You can directly speak with the lender regarding what course of action you want to take. However, as I indicated earlier, lender may not want to recognize you, unless you are current in your payment.
Since, your step father is attempting to negotiate deed in lieu of foreclosure, it appears, the loan payments are not current.
I wish you good luck.
Please click on my profile and call me. I live in the zip code adjacent to yours, and I promise--no sales pitches or smarminess. We'll be going to the downtown Farmers Market tomorrow morning, so call anytime after, say, 9--or just email, if you prefer. Hate to tell you this, but you may need some legal advice.
But you need information to use on making a decision. No charge for information. :)
Buy a home after foreclosure expert
If you are facing a legal emergency then you should hire a real estate attorney immediately to protect your interests.