Unrecorded Mortgage ?'s In NY
Scenario: Upstate NY. Grandma goes to Nursing Home. Married Granddaughter "buys" Grandma's house to keep homestead in family. "Buys" house for appraised value from Grandma. Title search shows no mortgages or liens against property. Grandma holds mortgage, but never recorded at County Clerk's office. Grandma's savings runs out. Granddaughter forced to make mortgage payment to Social Services (Medicaid?) to keep Grandma in Nursing Home. Granddaughter gets divorced and loses job. Real Estate taxes fall in arrears. Granddaughter ready to file for bankruptcy and give up house at tax auction in one month.
Questions: If Granddaughter signs quit claim deed over to me, can Social Services contest the transfer after it's done? Can I "lend" the Granddaughter the money to redeem property before tax auction, take a recorded mortgage on the property to gain a primary position and if I ultimately foreclose on the property, wipe out the unrecorded mortgage and any lien imposed by social services?
Are you sure social services filed a lein against the house or is the daughter just sending them the money instead of G-mommy"
[addsig]
Seems to me that granddaughter owns the house.
If there is no recorded mortgage, than you only have to deal with the Tax issue.
Get a good overview of granddaughter's financial woes.
What are the components and are there other liens on the house?
If the numbers make sense, have granddaughter Warranty Deed the house to you for the back taxes. Get her in touch with a credit counseling service to work out her problems.
Escrow some money to make her first couple of months' payments.
Run the whole thing by your attorney, and if he gives a green light, you may have a very good deal to start the year with.
[addsig]
Thank you for the help. As of last Thursday, there were no recorded liens on the property. I believe social services was involved in arranging the mortgage payment scheme to get their hands on Grandma's asset. She couldn't produce a written agreement? I'm concerned they will still try to encumber her in some way but don't have any experience in this area.