Quick Claim Deed

[tkarl]

Hello everyone, first time here.  Question!!!, if I have my investor at closing from an reo that we purchased and want to do a quick claim deed, what are the steps in pursuing that, such as, who do I notify to obtain a quick claim so I can sign off on the deed and take my self off the title and hand it over to my investor? Do I call the banks tilte company prior to closing to notify that we are doing a quick claim?  Are most banks ok with this process when closing on an reo?  I will follow up with my attorney when ever he gets back from vacation.
I figured while I'm waiting for him to return I can get input from this forum.

This forum is really informative.  I'm glad that I signed up.

Tim

[kdhastedt]

It's a QUIT Claim deed and it may or may not transfer anything...all it does is QUIT any claim that you MAY have to a property.  In many cases, it is weak and may actually cloud the situation.


From the REI Club Investing Glossary (in the left-hand column):

"Quitclaim Deed - a deed that conveys only the grantor's rights or interest in a property, without stating the nature of the rights or interest and with no warranties of ownership."

"Quitclaim Deed - A deed that transfers without warranty whatever interest or title a grantor may have at the time the conveyance is made."


You want a Warranty Deed if at all possible. 

Real estate is NOT the place to cut corners to save a couple of bucks or a little time.

I would talk with the title company or a local RE attorney for legal advice specific to your situation.

Keith

[ljcramerproperties]

It's a QUIT Claim deed and it may or may not transfer anything...all it does is QUIT any claim that you MAY have to a property.  In many cases, it is weak and may actually cloud the situation.

You may want to tell Eric Medemar about this because that is what he is telling us to do on this board. It is a way to get around the non-assignability of REOs. Thanks!

[tkarl]

Thanks Cramer,

I have seen people using this technique in lieu of purchasing with the investor.
Land trust won't work either in my neck of the woods. Do you think this method is capable and not illegal? Will the bank void the contract if I try to deed during closing to take my name of the title?

[Jeremy1113]

I read you cant use this Strat. with  HUD homes. Not sure tho

http://www.premierrealestateinvesting.com/how-to-wholesale-bank-owned-reo-foreclosure-properties/

[tkarl]

Yes Jeremy, I suspect that this type of method is restricted because of there seasoning policy which is 90 days..  Also fannie may and Freddie mac have requriements to this as well...

[Dave T]

If we assume that both you and your investor are both named principal parties in the purchase agreement with the bank, then giving your partner a quit claim deed at closing will remove your name from the title.  The settlement attorney can prepare the deed for you and have you execute it at the settlement table. 

When you walk away from the settlement table, the bank will have given a special warranty deed to both you are your investor partner, you will have given your partner a quit claim deed, and your partner ends up as the sole owner of the property.

Is that how you see the settlement going?

[tkarl]

Dave-

yes that is what I'm and trying to implement.

Thanks...