Quit Claim Deed submitted before Reverse Mortgage

[Glen G. Winters]

My father and mother bought a house for $48,000. In 2010, they signed a Notarized Quit Claim Deed for their 3 children Glen G. Winters, John A. Winters and Lili S. Thackwray as executors in event of their deaths. They reverse Mortgaged the house in 2011, for $50,000+ and NOVAD Oklahoma CIty OK has been tacking on interest and now the total value of reverse mortgage is $310,000 and climbing every month by 5%. My mother passed away on February 9, 2018. My father is now 85 and paying utilities and property taxes on the house. Glen G. Winters has been living in the house since 1975 is a veteran and Gov't worker for 11 years. Is the Quit Claim Deed still Valid?

 

[army judge]

Is the Quit Claim Deed still Valid?

This is a tricky one.

Why?

Using a quit claim deed to create a trust, which is what your parents actually attempted, caused this issue.

Your parents actually sold their property interests in the home when they took out the reverse mortgage.

The home will NOT pass to any of the siblings upon the passing of your father.

Why?

The home is owned by the mortgage company, or some unknown investor involved in the reverse mortgage who buys paper.

Your parents actually took a "life estate" when they executed the reverse mortgage.

Whether they could still do so, after giving the three of you the quit claim probably became a moot point when your mother passed away.

Why?

Probably, that is when title and sole ownership (such as it was) passed to your father.

If I were in your shoes (and I have been), I made mother comfortable and forgot about her home.
Dad predeceased mother, and all I wanted to do was make her comfortable.

The takeaway for you is that when you start estate planning, don't do it yourself.
If you want it done legally, hire a lawyer to create the right instruments and documents to make sure your wishes are carried out as you desire.

Please accept my belated condolences upon losing your mother, make dad comfortable, and enjoy the time he remains with you.

 

[adjusterjack]

Is the Quit Claim Deed still Valid?

No, of course not.

When your father dies, the house goes to the mortgage company and you'll have to find yourself another place to live. Unless you can come up with the money to pay off the loan.

 

[zddoodah]

they signed a Notarized Quit Claim Deed for their 3 children [Child 1, [Child 2] and [Child 3] as executors in event of their deaths.

I'm not really sure what this means. For starters, death is not an "in the event of" thing. Death is inevitable. Second, and more importantly, what does "a . . . [d]eed for their . . . children . . . as executors" mean? An executor is a person appointed by a probate court to administer the estate of a deceased person.

Is the Quit Claim Deed still Valid?

Anyone who opines about the validity of a document without reading the document, and without clear facts, is behaving neither intelligently nor responsibly. That said, I agree with most, but not all, of what "army judge" wrote.