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Updated almost 8 years ago,

User Stats

7
Posts
1
Votes
Sean Walker
  • Cleveland, Oh
1
Votes |
7
Posts

Lender asking me to sign mortgage, not title due to their mistake

Sean Walker
  • Cleveland, Oh
Posted

Buying a multi-family with my brother (both of us married).  Lender has been a mess from the start.  Long story short, it's in the 11th hour and the lender realized my wife (Korean) can not sign/notarize the dower rights in Korea (we live in Korea, brother lives in the US) due to the fact that the only US recognized notary is in the US embassy, which she can not access.  Their solution was for me to only sign the mortgage and not the title (and thus bypass the need for her to sign any documentation).  This is obviously insane, however after a lengthy email outlining my complaints they have agreed to waive the closing costs if we proceed.  

Assuming my brother is trustworthy, what other scenarios could this come back to bite me in the ***?  The plan is simply for him to transfer half ownership to me after we buy the property.  The title company (lawyer) said there is no reason for the lender to care who the title is transferred to after the deal is complete, but that they do in fact have the power to stop the transfer.   I was advised to inform the lender of our plans, which I did stating this is a condition that must be met if I am going to proceed with closing.  They predictably did not respond to this portion of the request so I have nothing in writing.  

This deal was a slam dunk and now I feel in a bit over my head.  I'm prepared to walk from the deal (even after five months of dealing with this nonsense), but obviously this is not ideal.  I'm happy they waived the closing costs, but these people seem evil and I'm almost certain they will do anything after the closing to make my life miserable lol.  Any advice from more experienced investors?  

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