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  1. #1
    Join Date
    Nov 2012
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    Default Deed Not Recorded when Signed, Now Causing Problems With Credit

    My question involves real estate located in the State of: Iowa

    Good morning!

    Our situation is this: We are currently living in Maine and are looking to purchase a Fannie May home here. Back in 2007, we were under a 6-month contract to purchase a home back in Iowa, however, due to job relocation we did not pursue the purchase and instead remained on as tenants for a total of 16 months (including the 6-months of the contract-to-buy agreement). After we moved out in December 2008, we found out that the couple who owned the home was foreclosing on the house so we contacted our attorney who had us sign a Quit Claim Deed on May 28, 2009. I'm unsure now as to why we signed it when, per the contract-to-buy, we were under no obligation to purchase the house after the initial 6-months had passed and we hadn't secured financing to do so. Anyways, our attorney sent the Quit Claim Deed to the other parties attorney on June 3, 2009. The attorney for the other couple, however, held onto the paperwork and never submitted it to the court for recording until October 28, 2010. He has now since been dis-barred and is currently serving time in federal prison for fraud along with many other charges. Jump to the great state of Maine and our attempt to purchase this house and when the mortgage company ran a title check, this property came up with our name attached to it showing that we de-deeded the house back to them in October of 2010. Now the mortgage company doesn't want to follow through with the loan. We have contacted our attorney back in Iowa who has agreed to write an affidavit stating what happened with this case and that the other attorney is no longer even practicing. My question is: is there any chance that someone out there is going to look at the date of the legal document we signed, dated and had notarized or is the document that was presented to the Recorders Office going to take precedence? Is there ANY way of having the Recorder for that county use the date we signed on the notarized paper?? Do they ever "change" dates??????

    *It should be noted that although the couple had begun the necessary work to foreclose on the home, after contacting the County Attorney we learned that they, in fact, did not foreclose on the property and are actually currently living in the home.

  2. #2
    Join Date
    Jul 2012
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    479

    Default Re: Deed Not Recorded when Signed, Now Causing Problems With Credit

    I suspect you had a lease with option to buy and simply didn't exercise your option, so I too find it weird that someone thought you'd have to sign a quit claim in the first place. BTW, an owner cannot foreclose on their own home; a lender/mortgagor would do that.

    "My question is: is there any chance that someone out there is going to look at the date of the legal document we signed, dated and had notarized or is the document that was presented to the Recorders Office going to take precedence?"

    I'm not clear on what you mean here. Why does it matter what it was dated (and why wouldn't you have or be able to get a copy of it)? Please explain. I gather the prospective mortgage lender has it in its head that you defaulted on a mortgage or something and didn't bother to check any further ... and isn't listening to your explanation.

    I'd pester the attorney you mentioned, and also feel free to pester the former landlords for a letter explaining the situation and why they were told the quit claim was needed.

  3. #3
    Join Date
    Jan 2006
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    38,867

    Default Re: Deed Not Recorded when Signed, Now Causing Problems With Credit

    I don't find it odd at all that you were asked to execute a QC deed, given the situation. It is beneficial for whomever that is foreclosing. It formally relinquishes all claims of interest you might have in the home. Given you had a rent to own contract, that could allow a claim of some form of interest in the property. The QC deed simply cleans things up and provides for a definite answer as to whether you have a claim of interest. It should not be seen as a derogatory mark on your credit. It should not affect your current attempt to obtain a loan.

    A quit claim deed does not necessarily transfer any ownership. It simply transfers all interest you have in a property to the grantee. You were not deeding the property to anybody because you never held title. You were simply formally relinquishing all claims of interest you may have had.

  4. #4
    Join Date
    Sep 2005
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    Default Re: Deed Not Recorded when Signed, Now Causing Problems With Credit

    Quote Quoting Foster_Foster
    View Post
    I suspect you had a lease with option to buy and simply didn't exercise your option, so I too find it weird that someone thought you'd have to sign a quit claim in the first place.
    Perhaps we're talking about a contract for deed / land contract.

    Here's a possibility: They entered into a contract for deed that required action at the six month mark - either they would vacate and surrender their payment as rent, or they would purchase the property and pay off the balance. The owner recorded the contract for deed. They decided not to buy, so they executed a quit claim deed relinquishing any claim they might make under the land contract. Then, down the road, the lender foreclosed and named them in the foreclosure lawsuit due to their remaining in the title history by virtue of the contract for deed. The owner said, "Oh, wait, here's a quit claim deed. Let's record it to remove them from the foreclosure, then we can settle the foreclosure in a way that makes you happy and keeps us in the house." The lender says 'Sure,' and the foreclosure is resolved, but the fact that BabyDC and her spouse were named as defendants in a foreclosure remains on their credit record. (But alas, we can only guess.)

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