My question involves real estate located in the State of: Georgia
Thanks in advance for taking the time to read my situation.
My father "owns" a piece of property with my uncle and his wife. To my knowledge the balloon-note that they are paying is only under my father and my uncle's name. The deed has my father, my uncle, and my uncle's wife's name.
My father has paid $3000 worth of payments on his own each month because my uncle has an issue managing his finances. The balloon-note came up for renewal and my father was told they cannot renew it because a lien has been places on it. After speaking with my uncle, my father has found out that a credit card company has placed the lien on it. The credit card in my uncle's wife's name.
My uncle has told my dad that they owe $7000 on the credit card. The bank is telling my dad that they can't do anything until the lien is removed. My dad is afraid that he is at risk of not only losing the land but his credit being ruined. The bank has said that he could go get another loan to pay off the property to change ownership, the issue with this is that he recently lost his job and will not be approved without an income (my mom is making payments on the property with money that came from a death in the family and will not be approved with her very low income).
My Uncle told my father that if they give them the money to pay off the lien he will sign the property over to my dad and my brother and I will co sign to renew the note or obtain different financing. I've read about quit claim deeds but didn't know if this would help in his case and I've also read that it doesn't remove my uncles name from the mortgage.
- So if we do not get it refinanced and it stays only in my fathers name, could their potentially be another lien put on it down the road?
- If we can pay off the lien. We would have a lawyer write up a contract stating my father would pay off the lien, being that it is not higher than a specific amount, but nothing more than the lien. He is afraid my uncle is desperate and may be wanting him to cut a check for more than the lien actually is. Would this be the correct thing to do?
- I understand that if the note is not renewed due to lien, it would be taken back by the bank. If for some odd reason it isn't called, would the credit card company just try to take my uncle's interest in the property?
- Is there any other course of action that my father can potentially take to avoid losing this property that he has been making all the payments on?