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Author: JAFO31 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121592  
Subject: Re: profits from sale of home Date: 4/10/2002 11:48 AM
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umma2three: {{{{"I apologize for my unclear post. Let me clarify.

My sister and my mother are both on the deed. My mother orginally bought the property and a few yeas ago, my sister moved in and they refinanced the property together. They have both been living in the property, and sharing the mortgage."}}}}

[JAFO responded] <<<<I am not nearly as good on taxes as Phil, but I know a little something about real estate and I am still confused. If your "mother originally bought the property," when did your sister acquire her interest ("both on the deed") in the property?

Just because your sister was part of the refinancing (i.e., undertook obligations to the lender to repay money) does not necessarily mean that she owns any of the property.>>>>

umma2three: "My mother bought the property in 1984. Then refinanced with my sister around 8 years ago.

I am a litte confused. How do you define ownership of a property?"


This is real property we a re discussing, so it takes a Deed (of some kind, general warranty, limited warranty, quitclaim, etc.) to vest an ownership interest. (I am ignoring contracts for deed and lease options).

If your mother bought the property in 1984, then there should have been a deed that listed her as grantee.

Was there ever a deed from you mother to your sister, either of the entire property or some undivided interest? You never mentioned one in any of your posts. IOW, by what instrument did your sister acquire her interest in the property.

The primary documents of interest to the lender in a loan situation are the note, which contains the promise to repay, signed by whomever has agreed to reapy the loan, and the mortgage (or deed of trust) which pledges the real estate as collateral if the loan is not repaid, and which is executed by the owner(s) of the real estate. There may well also be a loan agreement, a guaranty, and UCC financing statement, and a host of other documents.

Just because someone signs (or co-signs) a note or signs a guaranty does not necessarily make them the owner of the real estate. Thus, the statement that your mother refinanced with your sister 8 years ago (circa 1994) tells me nothing about who owns the real estate.

The more you post, the more concerned I am that this is a real muddle and that Phil's previous post that you need professional advice to understand what has actually been done (for better or worse) and to attempt to accomplish whatever it is that you inted to accomplish in light of what has been done so far.

Regards, JAFO

Disclaimer

Yes, I am a lawyer, BUT THIS IS NOT LEGAL ADVICE; it is only general information. NO CLIENT RELATIONSHIP IS INTENDED TO BE CREATED, NOR IS ANY SUCH RELATIONSHIP SO CREATED. FOR SPECIFIC LEGAL ADVICE YOU SHOULD TALK TO A LAWYER IN YOUR AREA.







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