Long story short:
- Wells Fargo approved a short sale.
- 'Husband and Wife' are the mortgagors. Because of health concerns and age, they added 'daughter' to the deed.
- Husband, wife and daughter have been on all written contracts, approvals and prelim HUDs throughout the process.
- Right before closing, attorney discovers a judgement lien (which they originally MISSED) on the daughter which is attached to the property.
- I resubmit the prelim HUD showing a payoff on the judgement
- WF replies that since the daughter is not a mortgagor (but she IS on the deed), they will not allow the payment.
- This is a HAFA SS.
- Buyer won't pay. Seller does not have any money.
- Any ideas on how to clear this judgement?
My only idea is to have daughter Quitclaim her interest back to her parents, but I am not sure if this will 'un-attach'.
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The closing attorney could make a request to the creditor as to issuing a Release "as to the property only", leaving the debt still applicable to the daughter, but removing the Judgment against the property. Sometimes they will agree to this for a fee, which varies, but it's worth trying.