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Erica Crohn Minchella

Erica Minchella’s Answers

446 total


  • Can a bank rescind an agreement of sale after issuing a short sale acceptance letter, even though buyers fully met their oblig?

    Bank issued acceptance letter 12/15/10. On 1/24/11, we received an e-mail from atty who submitted short sale paperwork, stating that bank would not allow sellers assistance with buyer's closing costs, even though we had previously received a cong...

    Erica’s Answer

    Essentially, there is nothing you can do. The "contract" for the approval of the short sale is between the sellers and their lenders. If the lender rescinds or conditions their approval, the only party that could sue for breach of contract, is the Seller. You as a buyer have no rights as to the Sellers' lender. If there was a contingency in your contract for approval of the short sale, and the short sale was not approved, or rescinded, then the contingency was not met and the contract is terminated.

    This answer does not constitute legal advice and does not and is not intended to create an attorney-client relationship. The law may vary depending on the state in which you reside. It is intended only to give some direction in which to seek assistance.

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  • 4 fam rental property mortgage/lien free, how long does it take to the close its sale if I am going to hold entire mortgage

    Looking to sell property to friend.. no need for Credit check or title search.. I would be holding the whole mortgage.. How long does the process take to make this a legally binding sale? Once the sale is made can any creditors go after the proper...

    Erica’s Answer

    Your question raises as many questions as it asks. The time frame for handling the kind of sale you suggest should only be a matter of days, you need to get your conveyance documents drafted, the mortgage and Note drafted, and documents signed and recorded.

    If you are concerned about transferring property when there are possible claims of creditors, you may be engaging in a fraudulent conveyance. If that is the case, the transfer could be completely reversed by the creditors. Also, if you convey the property by deed and then take out a mortgage - although the property is no longer an asset, the mortgage is.

    You really should not go into this transaction without the advice of counsel.

    This answer does not constitute legal advice and does not and is not intended to create an attorney-client relationship. The law may vary depending on the state in which you reside. It is intended only to give some direction in which to seek assistance.

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  • House Short Sale requirements and Obligations

    I have bought a house in short sale. However, I do not want to move in but to rent it back. I hear that the new owner has to move in and live in the house and the former owner MUST move out. Is it true? What I want is to rent it back to the...

    Erica’s Answer

    You should look at your loan documentation. Did you agree that you would occupy the property within 60 days of the purchase? You may be committing a fraud on your own lender if you did not disclose to your lender that this was going to be investment property. The interest rate is different for owner-occupied property than it is for investment property.

    This answer does not constitute legal advice and does not and is not intended to create an attorney-client relationship. The law may vary depending on the state in which you reside. It is intended only to give some direction in which to seek assistance.

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  • We bought a house (short sale), can the title company modify the HUD-1 after closing?

    The HUD-1 we signed at closing is totally different than one we received in the mail a few weeks later from the title company. The closing costs were lowered significantly, but the credits we had originally disappeared from the new HUD-1. Are th...

    Erica’s Answer

    The next time you try to contact the title company, tell them you believe that your not getting the HUD1 that you signed is a RESPA violation and that your next call with be to an attorney if they do not clarify this situation for you. And then make good on your promise. When you sign a HUD1 you are verifying that all of the figures are correct. Even if you signed a statement for the title company that they can have your power of attorney to make changes if there are such errors as typographical mistakes, that does not allow them to simply change their error on the HUD1 without letting you know or having you re-execute the closing statement.

    This answer does not constitute legal advice and does not and is not intended to create an attorney-client relationship. The law may vary depending on the state in which you reside. It is intended only to give some direction in which to seek assistance.

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  • Son is buying home w/girlfriend. Because of credit issues loan is in her name only. He will be paying 1/2 of mortgage.

    How can he be protected that he is 1/2 owner of the home that he is paying for?

    Erica’s Answer

    They should get a lawyer to help them draft a partnership agreement that sets forth what will happen in the event that they break up. If he is not on title, he will have no rights to the property if they break up, unless there is a solid written agreement of his rights under the property. If he doesn't do this, he risks having those mortgage payments considered nothing more than rent.

    If the property is quit claimed to him after the mortgage is put on the property, the lender could invoke the "due on sale" clause of the mortgage - meaning that the entire debt is due. The addition of another party to the title is essentially an non-monetary default under the mortgage.

    This answer does not constitute legal advice and does not and is not intended to create an attorney-client relationship. The law may vary depending on the state in which you reside. It is intended only to give some direction in which to seek assistance.

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  • Are Quit claim deeds ever worded "without consideration" when no money is transfered and you are only removing co-owner?

    Just need to get co-owner name removed from deed. and real property transfer tax exemptions list shows exemption #4 as "remove co-owner or joint tenant without consideration" for filling out the declaration of value form

    Erica’s Answer

    Most deeds are recorded with a nominal consideration listed, whether or not it is a sale of the property or a convenience. For consideration you could just put "$1 and other good and valuable consideration the receipt and validity of which is acknowledged."

    This answer does not constitute legal advice and does not and is not intended to create an attorney-client relationship. The law may vary depending on the state in which you reside. It is intended only to give some direction in which to seek assistance.

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  • Property title changed by Deed in lieu of forclosure, I was sued to PAY for the forged illegal mortgage, is that permitted?

    My name was dropped from the title with approval of the bank, I never knew of the mortgage attained with the forged power of attorney and I was not on the Note for $100,000. The 5th amendment, concealing details, was taken by a relative who did th...

    Erica’s Answer

    Your question is way too complicated for an attorney on this site to answer without the ability to look at documentation. Find an attorney in your area that concentrates in real estate litigation.

    This answer does not constitute legal advice and does not and is not intended to create an attorney-client relationship. The law may vary depending on the state in which you reside. It is intended only to give some direction in which to seek assistance.

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  • Lease option in Illinois

    If I lease option a property and the owner defaults on their mortgage,could I automatically assume the mortgage (assuming my credit is shot and I couldn't qualify) or would I be out?

    Erica’s Answer

    You might want to assure against this problem by either have an third party independent take your rent payments and apply them to the mortgage or, alternatively, make the mortgage payments yourself and provide proof of payment each month to your landlord.

    This answer does not constitute legal advice and does not and is not intended to create an attorney-client relationship. The law may vary depending on the state in which you reside. It is intended only to give some direction in which to seek assistance.

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  • I purchased a home in IL less than 2 months ago. within two weeks my main sewer line backed up with water into my basement.

    come to find out there were tons of roots in my main sewer line. this problem was not disclosed during closing. the repair cost 3k. is there a way i can get my money back from the sellers?

    Erica’s Answer

    Did you get an inspection of your home? See if the inspector did his job right. That may be your only recourse. After all it is only $3000 - the legal fees alone could be the amount you are trying to collect.

    This answer does not constitute legal advice and does not and is not intended to create an attorney-client relationship. The law may vary depending on the state in which you reside. It is intended only to give some direction in which to seek assistance.

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  • Do I need a lawyer for this?

    I recently purchased a home for my daughter, her husband and 2 small children. They filed for bankruptcy last June and would never have owned their home due to an interest only mortgage that no one would refinance. She has a state lien that is t...

    Erica’s Answer

    Should you change the deed to their name? There is no legal reason why you cannot (i.e. the bankruptcy would no longer be an issue) You should, however, talk to your tax adviser as there can be some extreme tax consequences for just transferring the house.

    If you keep the house in your name and your daughter and son-in-law divorce, you can do whatever you want with the property

    This answer does not constitute legal advice and does not and is not intended to create an attorney-client relationship. The law may vary depending on the state in which you reside. It is intended only to give some direction in which to seek assistance.

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