Quit Claim subject to Existing Mortgage Deed

[Jason Hatfield]

I am currently in a BINDING contract with a SELLER of a residential piece of property an I am the BUYER for the sum of $20,000.00. The contract is seasoned, and is sitting at a Title company ready to close. There is a Mortgage Deed on the property in the amount of $20,000.00 that is held by a private individual. The Seller agreed to sell the property to me for the amount owed. At the time that the contract was signed by the seller (6-9-2016 ) was 2 months behind. The mortgage lien holder has not notified the Seller that he is accelerating the note, nor has he filed any FORECLOSURE PROCEEDINGS to collect on the note. Since the Private Mortgage Lein Holder has found out that the Seller is selling me the property, he is not willing to provide a payoff to the Title Company, he is actually being very combative, and very uncooperative. I am pretty sure that he wants the property back and is upset that the SELLER has entered into a contract to sell with me.

My question is what can I do to close on this deal, if the lien holder with the Mortgage Deed will not provide a payoff for the Note?

[Bill Gulley]

Under ALTA and Dodd-Frank the note holder has 15 days to provide a payoff with per deim interest after a scheduled settlement date good for 30 days, private or institutional note, it doesn't matter.

There is a long list of claims to make against the note holder (who obviously wants the property back) violation of federal settlement requirements, associated settlement fees for any extension, interference with your contract, predatory lending delaying a payoff for accrual of interest, I'm sure there are more. Making threats in connection with a payoff will also fall under collection activities. The note holder can lose his lien and his money.

I'm sure the title company has seen this before, light a fire under them to move forward. You should not even speak to the note holder. After they explain the real world to him and he still refuses, sue his tail off!

On top of the UCC, ALTA, Dodd-Frank, Fair Credit/Collections Act, there can also be state laws violated as others have mentioned. As Wayne said, see an attorney and hit the note holder for the attorney fees.       

Brian must be upset with me, LOL. 

Thank you Mindy! :)