What liability is there in signing the deed for a property heading into foreclosure?

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What liability is there in signing the deed for a property heading into foreclosure?

I am receiving a house with the death of my mother subject to the mortgage. We would like to sign the deed but worry that later we may not be able to obtain the mortgage. The property would be lost if we don’t obtain a mortgage and we would be forced to sign a quit-claim returning the house to the estate. A VA inspector may not approve due to water damage on the outside and inside around the kitchen sink, bathroom shower and tub. We have been living in the house for the last 10 years. The executor of the trust would rather we don’t get the house so there is no help coming from them.

Asked on July 30, 2012 under Real Estate Law, Washington

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

You have no liability to the secured lender for the loan with respect to the house that you have written about because you did not sign the loan. However if you get legal title to the property and do not want to lose it in foreclosure, you need to become current on the loan presently in existence or retire it with a new loan.

If the home is lost in a foreclosure, you would have no personal liability with respect to getting legal title to it. I suggest that you consult with a real estate attorney to assist you in this matter.


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