Question about a quitclaim deed...

[GettingGoing]

Hoping someone can chime in and tell me if I am thinking clearly. I have posted before that the wife and I are working on 3 years post bk7. We did not reaffirm our fha mortgage and moved out shortly after bk7. Wells Fargo has done nothing except change the locks on the house. We would like to purchase another house but obviously we can't since wells is taking their sweet time foreclosing on out property so our 3 year waiting period hasn't even begun. I have read on here that people have used a quitclaim deed to remove their spouse from the old property deed thus giving them the ability to attain a new mortgage on the own. Is this how it works or am I missing something? We have been looking into the USDA guaranteed program. Would the fact that the original bk7 mortgage is an fha backed loan hurt her chances of being approved for an USDA loan? Thanks and I look forward to hearing feedback.

[justbroke]

I have not heard that this process works. It could probably work in cases where the spouse is not a cosigner on the original (surrendered but not foreclosed) mortgage/promissory note. It really comes down to underwriting and that is where most people get into issues when needing to explain things.

It would be interesting to hear more about this. Just for fun, maybe you should double check your mortgage and make sure that Wells Fargo didn't do the unthinkable and Release the mortgage. It has happened, although it is extremely rare.

[GettingGoing]

I have not heard that this process works. It could probably work in cases where the spouse is not a cosigner on the original (surrendered but not foreclosed) mortgage/promissory note. It really comes down to underwriting and that is where most people get into issues when needing to explain things.

It would be interesting to hear more about this. Just for fun, maybe you should double check your mortgage and make sure that Wells Fargo didn't do the unthinkable and Release the mortgage. It has happened, although it is extremely rare.

Thanks justbroke, I wasn't sure exactly how that would work. I am pretty sure I have read on here and other mortgage forums about people having success using a quitclaim deed for the purpose that I described. Hopefully others can give their opinion on this situation.



I don't think that WF has released the mortgage. They still send papers to us trying to get us to apply for a modification on a weekly basis. I have been trying to figure out a way to light a fire under WF to get them to foreclose so that the 3 year clock can start. I have been thinking about calling them and telling them I am turning the house into a rental and renting to the first person that pays me a deposit and signs a lease. I really wonder if this would make them realize that I have no plans to move back into the house and force them to foreclose.

[justbroke]

If the home is in good condition, it may not be a bad idea to rent. Realize, however, that being a landlord can be a pain... especially if you are not residing within 100 miles of the rental property. Just last week, a friend of mine has had to sue his management company over a bad tenant. At least you wouldn't really be out any money in this particular scenario.

[GettingGoing]

If the home is in good condition, it may not be a bad idea to rent. Realize, however, that being a landlord can be a pain... especially if you are not residing within 100 miles of the rental property. Just last week, a friend of mine has had to sue his management company over a bad tenant. At least you wouldn't really be out any money in this particular scenario.

The house is literally new inside and out. We did a full renovation shortly after buying the house in 2005. New hvac, kitchen, baths. Its like walking into a new home. Sadly its still underwater. I debated actually renting it out but now that we haven't made a payment in over 3 years and are not occupying the house any longer I cant imagine that WF would be willing or able to modify the mortgage and keep the payments somewhere near what we would bring in with rent.

[tobee43]

rent it, it may get well fargo to move on your home.

the banks seemingly and in our case almost immediately gave the illusion that they had taken possession of the property, changing locks, padlocking out buildings and sheds so the people we hired to clean out our belongings no longer had access, only to find 5 years down the road we are no closer to foreclosing than the day we missed our first payment on the mortgage. (a missed payment the bank insisted was the only way to save our home and to be able to apply for a loan mod).

i never really "got it" before. you are at 3 years we are just about at 5 years with chase. i didn't want to rent it out, felt i shouldn't profit ...you know, morals etc. MISTAKE. most likely you also did what we did, leave and surrender the property, which only means you make the property "available" to the creditor for collegial. they can take all the time they like to do whatever they chose.

if i could, and only because the house was let go so it's not inhabitable, however, if it was in the shape like yours is, i would hire a property management firm have them go in and change the locks back since the house is still YOURS and in YOUR name which the management firm can confirm and i would rent it out. make certain if you do you attach any disclaimers for liability and to rent at one's own risk. also, i would be honest and upfront with the tenet and tell them they are getting a discounted rate due to the pending foreclosure. wish i could do it!

the point it will make to wells is you snooze, you loose....it might jump start wells while putting some cash in your pocket. now you can show income to the bank in about 6 months from now and maybe show you can afford two places.

make that liability an asset.

[GettingGoing]

rent it, it may get well fargo to move on your home.

the banks seemingly and in our case almost immediately gave the illusion that they had taken possession of the property, changing locks, padlocking out buildings and sheds so the people we hired to clean out our belongings no longer had access, only to find 5 years down the road we are no closer to foreclosing than the day we missed our first payment on the mortgage. (a missed payment the bank insisted was the only way to save our home and to be able to apply for a loan mod).

i never really "got it" before. you are at 3 years we are just about at 5 years with chase. i didn't want to rent it out, felt i shouldn't profit ...you know, morals etc. MISTAKE. most likely you also did what we did, leave and surrender the property, which only means you make the property "available" to the creditor for collegial. they can take all the time they like to do whatever they chose.

if i could, and only because the house was let go so it's not inhabitable, however, if it was in the shape like yours is, i would hire a property management firm have them go in and change the locks back since the house is still YOURS and in YOUR name which the management firm can confirm and i would rent it out. make certain if you do you attach any disclaimers for liability and to rent at one's own risk. also, i would be honest and upfront with the tenet and tell them they are getting a discounted rate due to the pending foreclosure. wish i could do it!

the point it will make to wells is you snooze, you loose....it might jump start wells while putting some cash in your pocket. now you can show income to the bank in about 6 months from now and maybe show you can afford two places.

make that liability an asset.

I have often considered renting the place out but like you said I just cant bring myself to rent it out while not paying the mortgage payment. Even if I decided to do so I am sure that 6 months down the road with a signed lease and steady rental income that a bank would ask me why I have the income from the rental however I am not making payments. I may call a management company and get their opinion on the situation. Long term if I cold get a modification that would bring my payment to what I would need to to be in order to make renting while paying the mortgage possible I would be fine with that.

[gregemm]

Not exactly the same situation, but when my ex signed a quit claim deed over to me that was sufficient for the bank to work with only me for loan modifications, and according to a few people I talked to it is sufficient for a short sale without the ex being involved.

[tobee43]

I have often considered renting the place out but like you said I just cant bring myself to rent it out while not paying the mortgage payment. Even if I decided to do so I am sure that 6 months down the road with a signed lease and steady rental income that a bank would ask me why I have the income from the rental however I am not making payments. I may call a management company and get their opinion on the situation. Long term if I cold get a modification that would bring my payment to what I would need to to be in order to make renting while paying the mortgage possible I would be fine with that.

i very much understand your view. mine was similar. and as gregemm situation indicates, it may work that you can get a loan mod.

i think it's an excellent idea with respect to a calling management company and get their take on it.

[GettingGoing]

i very much understand your view. mine was similar. and as gregemm situation indicates, it may work that you can get a loan mod.

i think it's an excellent idea with respect to a calling management company and get their take on it.

I decided to give Wells Fargo a call today just to get an idea of what they are doing and to see what type of modification they were offering. While I am going through the automated menus I hear that our house is currently in foreclosure with a sale date of 4/25. Its weird I received a postcard from a company last week saying that there was some kind of settlement by many of the large banks including WF and that I would be getting a check in the mail ranging from hundreds of dollars to $125,000. Naturally I initially figured it to be some type of scam however after doing some research at the government sites listed on the postcard it appears that many of the large banks have agreed to pay its customers for their shady practices that were in foreclosure in 2011. I wonder if these negotiations between the gov and the banks has held up the foreclosure and now that there is a settlement they are going forward with the foreclosure.