topic Re: Mortgage-Community Property and Real Quest in Mortgage Loans

Mortgage-Community Property and Real Quest

Redo77 — Mon, 21 Jun 2021 04:53:18 GMT

In 2018 I filed for divorce we live in a community property state. My exhusbands name was on all the bank documents, I signed the deed but not the mortgage. In December of 2019 I finally paid my attorney off and he filed my official divorce. We had the judgement just had to pay fees. I applied for an FHA mortgage....got all the way thru UW and was told they found a foreclosure in 2020! It was done on RealQuest. Mortgage shows up no where on my credit. Is their anything I can do?

Re: Mortgage-Community Property and Real Quest

Redo77 — Mon, 21 Jun 2021 17:45:37 GMT

Any and all suggestions, ideas advice welcome!

Re: Mortgage-Community Property and Real Quest

pizzadude — Wed, 23 Jun 2021 14:05:35 GMT

@Redo77 wrote:
In 2018 I filed for divorce we live in a community property state. My exhusbands name was on all the bank documents, I signed the deed but not the mortgage. In December of 2019 I finally paid my attorney off and he filed my official divorce. We had the judgement just had to pay fees. I applied for an FHA mortgage....got all the way thru UW and was told they found a foreclosure in 2020! It was done on RealQuest. Mortgage shows up no where on my credit. Is their anything I can do?

It sounds like Realquest is reporting that the property you co-owned was foreclosed, based on your name being on the deed. Even if it's not on your credit, you were the owner at the time the lender took back posession of the property. Was your name supposed to be removed after the divorce?

You should seek legal advice on the question of whether you could ever be held liable for the debt. It will depend on language in your divorce decree, community property laws in your state, etc..

Re: Mortgage-Community Property and Real Quest

Pony4her — Wed, 23 Jun 2021 15:28:06 GMT

You'd definately want to get someone involved in this. Regardless of whose name is not on the mortgage or on the mortgage, if someone doesn't pay the mortgage, the lien holder can forclose and take ownership of the realty regardless of whose names are on the deed. Did you complete a quit claim deed? Unsure if this helps, but I'm including some info for you. Good luck, don't give up.

Section 852(a) states that the spouse giving up his or her rights to property must expressly acknowledge in a declaration that they join in, consent or accept the transmutation. What this means is that in order for there to be no undue influence, the spouse must understand that they are giving up a property right. This express declaration cannot be oral. This express declaration must be in writing. It must contain clear language that the spouse understands they have a right to the property and that they are knowing giving up that right. In order for there to be a transmutation by quit claim deed as to real property, the quit claim deed must contain the express declaration right on the face of the deed so it is clearly noticeable and clear. A quit claim deed from two spouses into the name of one spouse with no other language supporting the transfer or stating that the property is to be the separate property of the other spouse does not support a transmutation argument or satisfy Family Code 852

Re: Mortgage-Community Property and Real Quest

Redo77 — Wed, 23 Jun 2021 17:36:36 GMT

I love in Louisiana and no quit claim. However, ex is agreeing that he is solely responsible. Does anyone know if I can I do a quit claim now? My ex will sign anything I need.

Re: Mortgage-Community Property and Real Quest

pizzadude — Wed, 23 Jun 2021 17:50:32 GMT

@Redo77 wrote:
I love in Louisiana and no quit claim. However, ex is agreeing that he is solely responsible. Does anyone know if I can I do a quit claim now? My ex will sign anything I need.

I don't know if removing yourself from the deed after the fact will affect the previously reported foreclosure.

Is underwriting concerned about the debt associated with this or the fact that it was recorded against a property which you owned, or both?

Re: Mortgage-Community Property and Real Quest

Redo77 — Wed, 23 Jun 2021 17:54:34 GMT

I was approved until they ran Real Quest. That was literally the last step in UW, I was 4 days from closing. I was denied when the foreclosure pulled up in real quest. It shows nowhere else.

Re: Mortgage-Community Property and Real Quest

Redo77 — Wed, 23 Jun 2021 17:56:24 GMT

They denied because of 2020 foreclosure. It was sold at sheriffs sale November 2019 according to the recorded documents. It started in 2018.

Re: Mortgage-Community Property and Real Quest

pizzadude — Wed, 23 Jun 2021 20:00:12 GMT

@Redo77 wrote:
They denied because of 2020 foreclosure. It was sold at sheriffs sale November 2019 according to the recorded documents. It started in 2018.

I don't know if there's any way around this, due to the fact that the deed was in your name at the time of foreclosure. Even if you weren't responsible for loans against the property, you'll be dinged if the lender ends up taking the property.

Re: Mortgage-Community Property and Real Quest

Redo77 — Wed, 23 Jun 2021 21:34:26 GMT

UGH!! Divorce - the gift that keeps on giving. Thank y'all for the advice and information!

Re: Mortgage-Community Property and Real Quest

pizzadude — Wed, 23 Jun 2021 21:52:11 GMT

@Redo77 wrote:
UGH!! Divorce - the gift that keeps on giving. Thank y'all for the advice and information!

I think it's still worth a call to your attorney to discuss, they may have other ideas or insight into this situation.

Re: Mortgage-Community Property and Real Quest

VALoanMaster — Tue, 29 Jun 2021 18:27:49 GMT

@Redo77 wrote:
UGH!! Divorce - the gift that keeps on giving. Thank y'all for the advice and information!

Who was awarded the home in the divorce?

Re: Mortgage-Community Property and Real Quest

Redo77 — Mon, 20 Sep 2021 16:32:46 GMT

We didnt do a property settlement - I was awarded usage, but I couldnt get any information out of his mortgage company

Re: Mortgage-Community Property and Real Quest

VALoanMaster — Mon, 20 Sep 2021 17:07:50 GMT

@Redo77 wrote:
We didnt do a property settlement - I was awarded usage, but I couldnt get any information out of his mortgage company

Who was responsible for the mortgage payment if you were awarded usage?

Re: Mortgage-Community Property and Real Quest

Redo77 — Mon, 20 Sep 2021 18:10:19 GMT

The house wasn't addressed in the final signed decree. Just child support and visitation. My divorce was finalized Dec 2019. Zero mention of any personal property or anything like that.

Re: Mortgage-Community Property and Real Quest

VALoanMaster — Mon, 20 Sep 2021 18:58:00 GMT

@Redo77 wrote:
The house wasn't addressed in the final signed decree. Just child support and visitation. My divorce was finalized Dec 2019. Zero mention of any personal property or anything like that.

Isn't that highly unusual?

Re: Mortgage-Community Property and Real Quest

Redo77 — Mon, 20 Sep 2021 19:39:21 GMT

At the time, it took me 2 years just to get a finalized custody and child support agreement. I was so thankful it was over. The house was in his name, and I never thought in a million years he wasn't paying. That was our kids home! By the time I got sheriffs sale paperwork at the door it was too late. The mortgage company wouldn't even talk to me.