Appellant Jerry Brock “Brock” commenced this action against his ex-wife, Joyce Brock “Joyce”, and appellee Yale Mortgage Corporation “Yale” to, among other things, quiet title in the Suwanee residence he and Joyce once shared the “property”; set aside a forged quitclaim deed purporting to transfer Brock’s interest in the property to Joyce; and set aside a subsequent deed to secure debt Joyce executed in Yale’s favor or limit the deed to a one-half undivided interest in the property.1 The trial court granted Yale’s motion for summary judgment, declaring that Yale holds a valid security interest in the entire property and authorizing foreclosure. Brock appeals, arguing that even if Yale is a bona fide purchaser for value, it did not acquire a valid security interest in the entire property by virtue of such status; Yale’s status as a bona fide purchaser for value is a question of fact; and, contrary to the trial court’s conclusion, he did not ratify Yale’s loan transaction with his then wife. We affirm the order of the trial court insofar as it concluded that Yale holds a valid security interest in a one-half undivided interest in the property. We agree with Brock, however, that Yale could not acquire a valid security interest in the entire property by virtue of its status if any as a bona fide purchaser for value and that factual questions exist regarding ratification. As such, we reverse the trial court’s order to the extent that it holds that Yale has a valid security interest as to the other one-half undivided interest in the property and remand so that a jury may decide whether Brock ratified the quitclaim deed in his divorce settlement agreement with Joyce. Viewed in the light most favorable to Brock, the nonmoving party, Chester v. Smith , 285 Ga. 401, 401-402 677 SE2d 128 2009, the record shows as follows. The Brocks purchased the property jointly in 1987, financing the transaction with a loan from First Railroad Mortgage Company. In connection with the loan, the Brocks executed a security deed and promissory note in the amount of $56,000 in the lender’s favor. The Brocks did not have a joint bank account. Brock maintained a checking account and gave his wife money each month to make the loan payment, but she did not always use the funds for that purpose. As a result, the Brocks’ loan, which had been assigned to Atlantic Mortgage & Investment Corporation “Atlantic”, went into default in October 1996. The following month, Atlantic’s counsel sent the Brocks a notice of foreclosure sale by certified mail. Joyce borrowed money from a friend to bring the loan current and stop the foreclosure process. In August 2000, Joyce received a second notice of foreclosure sale from Atlantic’s counsel due to her failure to make the required loan payments. Joyce did not tell Brock about the notice. To forestall foreclosure, she worked out a payment plan with Atlantic.
In January 2001, Joyce received a third notice of foreclosure sale after defaulting under the payment plan. Once again, Joyce did not inform Brock of the foreclosure sale notice, but instead contacted Jerri Browning of mortgage broker Capital Lending Group “Capital”, about obtaining a new loan. Browning assisted Joyce in procuring a loan from Yale. Browning advised Joyce that in order to secure a loan in her name only, Brock would need to convey his interest in the property to her. At Browning’s suggestion, Joyce requested a blank quitclaim deed from Yale’s closing attorney, who faxed the deed to her. At the February 2001 loan closing, Joyce presented an executed, unrecorded quitclaim deed by which Brock purportedly transferred his interest in the property to her. Yale does not dispute that Brock’s signature on the quitclaim deed is forged. Yale loaned Joyce $60,000, of which $15,460 was used to satisfy the Brocks’ debt to Atlantic. Joyce received $38,085.44 in cash at closing. Joyce executed a promissory note and deed to secure debt in Yale’s favor.
