Recorded Life Estate given priority over later-recorded mortgage
Here’s a situation that came up after parents transferred their home to their daughter and reserved a life estate. The value of the life estate vis-à-vis the whole property is a pro rata percentage based on the age of the life estate holder at the time of the transaction in question. The case is called Ocwen Loan Services, LLC vs. Quinn.
The transfer took place in 2004. A year later, the...