hi everyone sorry for posting some many different questions but hey knowledge is power right so i wanted to know if you would use a quitclaim deed or warranty deed to take a property subject 2 thanks in advance :help
Let’s try to anderstand each concept of ur question where a sb2 loan comes from the fact that the buyer takes over the existing loan on the property subject to the same terms and conditions and this could happen if the lender does not require due on sale close when you make the deal with the owner to convey title .At this point you do not assume responsability and you don’t need to have good credit .
A quitclaim deed ,just like the word said ,someone quits their claim on a deed for instance ,husband and wife decide to get separeted or divorce ,for some reason one decide to let the other one have the house that they bought together, in order to do so ,one has to sign a quitclaim deed meaning he or she has from now on no interest in the property.
A warranty deed is given to you by the owner of the property when purchasing it ,it’s a warranty again all emcombrements .I hope i answer ur question ,b/good
I think what tootoo meant to say was just stick with the warranty deed :deal
thank you guys for your help :biggrin
I have posted a few lines about this before, in regards to warranty deeds…
I like the warranty deed to trustee into and trust.
I use this for shortsale, subject-2’s, even if i do a sandwich lease option if i can get the deed into a land trust to protect the title i will, I know its a type of sub-2 but i like to protect the title of the property aspecialy when its a rental of some kind…
Just a differents of idea.
What do you guys think???
I’m sure my remark will probably create a heated thread, which is not my intent but only to create dialogue.
how exactly is putting the ‘deed’ or the ‘property’ into a land trust protect the title?
title insurance and an option memorandum is more than enough ‘protection’ needed in title.
The only reason why you would need to use a land trust is to try to hide the conveyance of title from the lender, which ultimately does nothing to hide or protect the title/mortgage.
it’s a lot of extra stuff for nothing in my eyes.
Its protect the title in this maner:
Ei: the property owner is in forclosure, he has 4 outstanding credit cards, and owes a constuction company $35,000 for a roof and some other work.
Now if the title is in the owner name when you do a shortsale (for instants) the title is still open to have ecummbrasses put against it. But if it transfered to a land trust the owners name is no longer on title and thus hedging the property from more debt to deal with…
But as far as the mortgage goes and other registered debt and existing lein against it, you are correct it doesnt remove it…
I Realy like the person protection of a land trust as well when it comes to liablity of a rental.
I recommend putting a property and all properties into a land trust…
How does a land trust provide liability protection for rental property? If it’s revocable, there is none. If it’s irrevocable, you have no say in how the property is managed.
Sub2 /warranty deed
If the property is transfered to the buyer by way of a warranty deed
Then the seller iam thinking is still held to pay all the other stuff he did and not the buyer
Unless there are leins on the property for all the other unpaid stuff correct ?
As when you buy sub2 this would be all mortgages leins on file ect correct ?
Then all the sellers bills /stuff that was a lein on the property is now yours to pay
As you took on the property sub2 all this stuff /leins
This is why you check out the deal check it out check it out
See just what is owed and any leins
Just because the seller is willing to sell to you on a sub2 is not that it is all good and a good deal
thats what a title search is for
Amen on the title search.
I will often times use a “letter report” to get the lowdown on the deal as it is a lot less expensive than a full blown title search. This has cost me anywhere from $25 to $75 where I live and they will often credit that amount to me on the title policy if I go through wit the deal.
Another thing to keep in mind is that for sellers who may be facing bankruptcy, the property needs to transfer to the new owner at close to its fair market value. If it is not, you risk it being a “fraudulent conveyance” and the bankruptcy court can undo just about anything.
This is usually more the case when someone wants to transfer a property with a lot of equity into the name of a family member to avoid losing the equity in bankruptcy.
Warranty deed is the only way I go. It is not that much more difficult to do, but basically gives you a sort of “personal guarantee” from the seller that everything is ok.
A quit claim just abandons all claims for ownership.