If I made up the back payments for a homeowner and had them sign over the deed to me, what rights do they have and what rights do I have. Basically, can the homeowner turn around and renig on the deal after I pay their back payments. If I plan on putting a RTO in the property how can I protect my investment. Thank you in advance for the help.
Check you state’s laws in California according to what you have detailed, the seller cannot sign over the deed until you have given them certain written instructions and a 5 business day right to rescind. If you take the deed and haven’t done the paperwork correctly the seller can rescind up to 2 years later…
If you did everything correct and they signed the deed most likely you own the house… Do as you please. However if you didn’t have a “No loan provision” in your contract the seller may argue that they thought they were getting a loan not selling their house. Always make sure the seller is out of the house before you pay money… I have a policy of cash for keys and cash for deeds…
All of this is why I never take a kitchen table deed… I use an escrow company who explains all of the details to the seller…
Michael Quarles
Thank you. When I do my contracts I will spell everything out clearly, in other words, backing up my deals in black and white.