Must I execute a warranty deed for a loan modification?

I was approved for an in-house modification on my mortgage. Upon receiving the legal docs, I noticed a warranty deed document as well. This doesn’t make sense. Doesn’t signing a warranty deed relinquish your ownership rights? Wouldn’t the objective of each process be the opposite of one another? Retaining home ownership through a modified loan. Yet giving away my rights to that ownership via a warranty deed?

Asked on June 23, 2012 under Real Estate Law, Iowa

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

You are very wise to have looked before you lept.  Please take those documents to ana ttorney to review and then to possibly the State Attorney General's Office.  This sounds like those scams where people were promised help in modification but they had to execute deeds  and then the companies sold the property right from under them.  Good luck.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.