Notary Blog: Deed in Lieu of Foreclosure for Illinois Property with a Twist

A Deed in Lieu of Foreclosure document was completed on behalf of two Anderson, South Carolina residents on the morning of July 27, 2016.  The situation for this signing was different than most because it was a two-party signing including a total of four (4) signers.  The original deed included only two of the parties, however, due to Right of Survivorship laws in the referenced state, the spouses of each of the original owners had to sign the Deed to eliminate any future interest in said property.

In certain situations like these, sometimes the spouse who never signed initial paperwork is confused, however, take in consideration the following scenario:

A single woman purchases property from a single property owner in 2002.  In 2005, this woman marries, however does not deed the property to both her and her spouse (Quitclaim).  In 2010, this same woman intends to deed the property to a buyer. Depending on what state you are in, her spouse may still have to sign off on the transaction because due to Right of Survivorship, that spouse still may have a vested interest in the property.

As I am not a property expert in EVERY state, please only take the above scenario for informational purposes and refer to your Real Estate Attorney or local REALTOR for the rules for your state.

To further complicate things, the signing included the ‘other’ original owner on the deed and their spouse; however, they signed in another state, at a future date and time. A Loose Acknowledgment was attached to the Deed in Lieu Of transaction document.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.