Can anyone explain to me how the QuitClaim Deed instrument works for extracting Equity from a foreclosure? I have tried to research this Deed type but only get that it is commonly used to Quiet Title. How does this become the best instrument for buying Equity from someone thats about to lose theirs?
Thanks
Bajamas
I guess I’d have to ask where you got that information. I wouldn’t suggest using a QuitClaim Deed. You want to use a general waranty deed.
You may be thinking about taking a property subject 2 in which case you can get a general warranty deed. Or, some investors require a general warranty deed before they will try and work a short sale.
A deed is a written legal document that convey ownership or a ownership in real estate from one party, called a grantor to another party, called grantee.
The most common type of deed used in Texas, and the one that affords the purchaser the greatest degree of protection is the general warranty deed.
A quiteclaim deed is one with no guarantees, warranties, or covenants. The grantor does not even claim to own the property. He/She states, “Whatever interest I have, if any, I do hereby grant and convey.” This type of deed is most often used to clear up a cloud on the title. it is also used to grant an easement
Go to any Title company they can help you for a fee…
I understand what a QuitClaim Deed is, I just don’t understand how it can be used to extract equity from a home. I have seen it written in 2 books on SS already that the /quitclaim deed can be used to extract equity from the home. How? And if a Quitclaim Deed is good for this why wouldn’t any other type of deed work even better, like a warranty deed or bargain and sale deed??
Since I have seen it more than once, I am assuming that there is a reason and the books that I have read don’t go any further into it.