How does one enter into a contract to sell home end up with deed register to another and still owe lender?

Asked by Pricey77, Denver, CO Thu Jan 8, 2009

Deed is in anothers name but owner still owes mortgage company that did not authorize assumption. What can be done when deed holder refuses to re-sign deed back to mortgagee? Deed holder defaulted on mortgage payments. Assuming he'd sold property to deed holder, mortgagee paid rent to deed holder who did not pay mortgage.

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Helene Moore, Agent, Henderson, NV
Fri Jan 30, 2009
There are many companies which appear to offer foreclosure relief that will require consumers to sign contracts which involve turning ownership of a home over to the foreclosure company and leasing the home back to the consumer with a buy back option at some future date. Many companies prey on consumers fears of losing their homes. Many of these scams are designed to fail .

An example of one scam known to be operating in Nevada: The perpetrator solicits victims directly through the mail with promises to help a homeowner from foreclosure by saving their credit and negotiating directly with their lender. The perpetrator will offer to buy the house for the total amount owing on the house, plus some small amount of cash.

The scamers will require the homeowner to sign a deed, a transfer tax form, and a contract of sale. The deed provides that the seller (the victim) is selling the house to a corporation. The perpetrator pays the cash to the victim and assures him he will take care of paying off any mortgages on the home. After the seller moves out of the house, the perpetrator rents the house, does not pay the mortgages, and the house goes into foreclosure. The scamer can continue to collect rent until the foreclosure process is completed. The homeowner collects none of the rent, and, once foreclosure is completed, the renters are evicted.

Assistance is available from licensed debt credit counselors, government agencies, and legal services. Seek advice from qualified professionals who do not have a personal interest in your decision.

Consumers may contact the Attorney General's Bureau of Consumer Protection about home foreclosure "rescue" scams at (775) 684-1180. A complaint form, as
well as other valuable information on consumer protection, is also available on the Attorney General*s website at
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Marilyn Orcu…, , Las Vegas, NV
Fri Jan 9, 2009
It sounds to me that someone attempted to do a wrap-around mortgage. There are a number of people that get involved in this due to the advertised programs of making a bundle in the real estate market. From the banks perspective they have a "due on sale" clause which would prohibt this, but still someone is going to try to do it. Their premise is as long as the payments are made the bank doesn't care. Well, here's that situation where the payments weren't made and you end up with a problem. I agree-you need legal advice. Make sure the attorney you are talking to knows what it is involved in real estate law.
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Damon Bottic…, Agent, Las Vegas, NV
Fri Jan 9, 2009
I think it would help to re-phrase your question to get clearer answers.

If I take out a loan (get a mortgage) then I will be held responsible to pay back that loan, even if the loan was secured by a property I no longer own.
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Bill Eckler, Agent, Venice, FL
Fri Jan 9, 2009

As explained, this does not add up but appears to be an issue best referred to an attorney for their legal advice.
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Dallas Texas, Agent, Dallas, TN
Thu Jan 8, 2009
I agree with Vicky sounds little "sticky" the only situation I can think of if property was owned out right with no mortgage owed to any lender just property owner. And current property resident did not pay. If so then foreclosure proceedings would need to take place via an attorney to evict current family.

I would confer with attorney and title company if mortgage is still owed to lender title could not be transferred. IF ALL IS CORRECT and full understanding.
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Vicky Chrisn…, Agent, Purcellvile, VA
Thu Jan 8, 2009
Huh? So, the deed is in Sally's name, but Joe owes money to a lender for a loan that was borrowed against the subject property? Am I understanding this correctly? Who was making the payments? Sally? So, Sally holds the deed and is paying the mortgage, and then stops paying the mortgage, thus affecting Joe's credit? Is that the issue? I am not certain how Sally got the deed... but hopefully there was an attorney and a closing company involved and they should be consulted.
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