Deed Ownership Change on a Property That is Currently Mortgaged
My question involves a mortgage in the state of: Pennsylvania
I'd like to know if it's legal to modify a deed that is currently mortgaged by a single individual and alter it to read "Tenants in common, with right of survivorship" and convey 50% interest in the land to a non-family member for the consideration of "one dollar".
The mortgage liability currently exceeds the fair market value of the land by 50 to 75%. In other words it's under water.
Can this legally be done or does it have to be remortgaged?
If not what are the legal ramifications both civil and possibly criminal?
J.E. Schwenk
Re: Deed Ownership Change on a Property This is Usrruetly Mortgaged
It can be done simply because a deed transfer is a simple action between two parties. It will not remove the security lien. It could activate a due on sale clause in the mortgage loan where the lender would call the note and expect payment in full.
Re: Deed Ownership Change on a Property This is Currently Mortgaged
Quote:
Quoting
jk
It can be done simply because a deed transfer is a simple action between two parties. It will not remove the security lien. It could activate a due on sale clause in the mortgage loan where the lender would call the note and expect payment in full.
The mortgage was secured by leases, some of which are fraudulent. i.e. some of renters in the list provided to the lender are quite dead and have been for some time.
Although the deed indicates that 50% ownership in the property was transferred for the sum of one dollar, we're reasonably sure there was a cash payment of at least $86K which is what he was seeking from other prospective buyers/partners. We're also reasonably certain he hasn't informed the lender of the transaction.
What are our options here?
Re: Deed Ownership Change on a Property This is Currently Mortgaged
Quote:
jeschwenk;681266]The mortgage was secured by leases, some of which are fraudulent. i.e. some of renters in the list provided to the lender are quite dead and have been for some time.
and? Not sure what the relevance of that is here.
Quote:
Although the deed indicates that 50% ownership in the property was transferred for the sum of one dollar, we're reasonably sure there was a cash payment of at least $86K which is what he was seeking from other prospective buyers/partners. We're also reasonably certain he hasn't informed the lender of the transaction.
it's irrelevant. If there is a security interest lien on the property, it is still there and it may have activated a due on sale clause. The amount of money is irrelevant. Unless you are the lender, not sure why you care whether he informed the lender or not.
Quote:
What are our options here?
how about starting with who you are in this situation and what your issue is here.
Re: Deed Ownership Change on a Property This is Currently Mortgaged
Quote:
Quoting
jk
and? Not sure what the relevance of that is here.
it's irrelevant. If there is a security interest lien on the property, it is still there and it may have activated a due on sale clause. The amount of money is irrelevant. Unless you are the lender, not sure why you care whether he informed the lender or not.
how about starting with who you are in this situation and what your issue is here.
I and two other siblings have a vested interest in this and we want the stealing to stop. The CPA's that have seen the S-Corp and personal financials all agree he's running a ponzi scheme with these loans. We know that he uses these loans to launder money. He only reports between 18-26% of what he takes in.
So to rephrase my question, what are the odds that the bank would move to foreclose or file mortgage fraud charges?
Re: Deed Ownership Change on a Property This is Currently Mortgaged
Quote:
Quoting
jeschwenk
I and two other siblings have a vested interest in this and we want the stealing to stop. The CPA's that have seen the S-Corp and personal financials all agree he's running a ponzi scheme with these loans. We know that he uses these loans to launder money. He only reports between 18-26% of what he takes in.
So to rephrase my question, what are the odds that the bank would move to foreclose or file mortgage fraud charges?
if the mortgage is being paid, unless there is a due on sale clause, the bank won't care.
mortgage fraud; unlikely
Re: Deed Ownership Change on a Property This is Currently Mortgaged
Quote:
Quoting
jk
if the mortgage is being paid, unless there is a due on sale clause, the bank won't care.
mortgage fraud; unlikely
We know he has more that one identity and SSN. None of the loans from this particular financial institution appear on his credit report. We also know that he failed to pay the county property taxes for the last two years and the property was about to go to a sheriff sale. Apparently the bank paid the taxes and added them into the principal to protect themselves.
Re: Deed Ownership Change on a Property This is Currently Mortgaged
Quote:
=jeschwenk;681325]We know he has more that one identity and SSN. None of the loans from this particular financial institution appear on his credit report.
then report him to the social security office. Obtaining multiple SS numbers under various aliases is illegal.
Quote:
We also know that he failed to pay the county property taxes for the last two years and the property was about to go to a sheriff sale. Apparently the bank paid the taxes and added them into the principal to protect themselves.
Ok and...? If they wish to do something about it or nothing about it is up to them. I suspect they are simply tossing the amount paid onto the loan.