Complicated problem with ownership of home.

**macawpower58** · 08-02-2009, 09:14 PM

I've a very confusing (to me) problem. A friend helped me to buy my home 7 years ago. Only his name is on the mortgage because the lender said my credit (poor at the time) would not allow a good interest rate on the loan.

3 years after the house was bought he quick claimed it to me. He also made a power of attorney over the sale of the home to me. He said he had death insurance so that the home would be paid in case of his death.

I've paid all bills from day one. The taxes are in my name. I have the quick claim and power of attorney.

He has died. His family could not find any of his personal papers. No insurance policies, no will, nothing on this home, nothing! This from a man who had every i dotted, and every t crossed. The mortgage company does not know he died, as only one family member knew about me and this house, and has kept quiet about it. His attorney (whom made his will) committed suicide, and none of my friends papers were found at his office either.

So, I'm in a home, with the mortgage in the name of a dead man. The mortgage company will not talk with me because my name is not on the loan. I'd like to get my name on the loan, refinance because the payment is killing me in this economy, we shortened a 30 year to 15 years a few years back when I had a better paying job. Now I need a lower payment. My credit is much better, but not sterling.

Will the mortgage company take the home if they find he has died? What options, if any, do I have?

Thanks for any help.

**Chrisopher Moltisanti** · 08-06-2009, 09:31 AM

Wow! Firstly, your friend Quit (not quick) Claimed the Deed to you. You therefore you have a clean title basically right now. Secondly, no the mortgage company won't take your home just because a friend of yours is dead. Thirdly, you can try and re-finance, sure, if you have the $5k closing costs/paperwork fees. Forget about putting your name on the loan, if you have the above filing/re-financing fees, re-finance with a different company you said the payments were getting too hard to handle anyway. Why would they need to talk to him or you anyway? You said all the bills are paid, the bank doesn't care where the money comes from, as long as the money is paid back and on time if one can do so. You're not committing fraud here.

So you see, from my point of view and experience, as long as the mortgage is paid, on time, each month, it's not relevant really where it comes from. But, since the loan is in his name, his credit will improve and yours won't. So, if I were you and had the fees to give to a new bank to refinance, I'd be doing this in the next hour. Call up a new bank and sit with a re-financing rep. and start it up. In the last few months, my bank was offering to refinance for $5k, a bank that you locate may be cheaper. Do it up, today. Good luck.
CM

**tucsonhomes** · 08-06-2009, 11:10 AM

Was the quit claim deed recorded at the county recorder's office? It is my thought that you need more help than might be available in this format.

There are serious consequences to what you are talking about including potential outside liens attaching to the property (inheritance taxes for one thing) and claims by any other beneficiaries of the estate.

Please contact a lawyer.

**Greg** · 08-07-2009, 06:40 AM

You should definitely be talking to a lawyer about this before you make a mistake and mess things up further.

**StephenFoster** · 08-07-2009, 09:36 PM

That's a pretty good friend.

Do you suspect that anyone will question the legitimacy of the quit-claim?

Regardless, you definitely should talk to a lawyer.