Warranty Deed Vs Quit Claim Deed
What is the difference between Warranty and Quit Claim? My dad is going to deed the family farm to me, and Farm Credit Association has suggested he use a Warranty Deed.
Know any sites I could go to for more explanation?
Thanks
A Warranty Deed says that the person handing over the deed guarantees that the property is free of liens and has no more claim on the property.
A Quit Claim Deed says that the person handing over the deed has no more claim on the property with no warranty that it is free of liens.
If I were you I would have him do a Warranty Deed because, to me, it looks better on a title search.
First you must get the wife on your side. Then you must get the daughter to understand that if the wife catches on to the equity, the daughter will have to at least split any $$ with the father and wife. Third you must find out who the hell can sign the title? Does the wife have POA or can the husband still sign.
The wife must understand that it is going into foreclosure and that it will damage his credit and the mortgage company will come after her husband with a judgement for any defiencies.
The daughter must understand that she might have to split any profits with the father and wife. Try to keep it under cover, but if the wife catches on the gig is up. It is her father's credit and money she is risking.
If you can get to the gold digger; then I'd make it clear to her that the daughter isn't getting anything out by them selling to you. If you offer $20-30k to her; she will KNOW you will be making more than that.
You can always give something to the daughter after you complete the sale, or find another way to recognize her financially . If the fathers will does not address this property, you would be VERY wise to work it out with the new wife.
with a deal worth $50K-65K, in my estimation plus the 20-30 to buy it, making it 70-95K is I understand, there are going to other people willing to pay more than the 20-30.
is the daughter not on specking terms w/ the dad?
Why can't see geth the signature or limited POA?
Do not contact the step mother yet. Get a lot more info regarding dad's condition. He is incapacitated in what way? Is he capable of signing a document if you or the daughter put it in front of him? And how far away is Dad anyhow?
Yes, there are legal actions which may make it possible for the daughter to gain title.
So help me out here, the property is worth how much? And the mortgage is how much? What price does the daughter want to sell?
Thanks Commercialking for your assistance and interest in my case. I truly appreciate your help as well as the other's on this terrific site! I'll give you a call later after I ascertain the other facts of the situation. When I speak to the daughter, I hope to get the current mortgage balance, the original purchase price and other pertinent financial info. With that, I can more accurately calculate my total costs. Looking at other area comps, I can sell the house for about $300-310K, possibly more in this market.
I'll see if she'll answer the more sensitive questions regarding her father's condition and maybe more details explaining the bitterness spewed by the gold-digging stepmom. A better understanding of their relationship can help me when I eventually contact the stepmom.
The story will unravel, but time is of the essence. I sense that other investors are scrambling for a solution, but I doubt that they have the resources that can be found here. Thanks to all! I'll update later.
Had a simular situation once abouot 10 years ago and thank's to my checking all details I saved myself alot of problems.
the old saying " if the deals to good there might be somthing wrong "
long story / short ....
had a wife that was trying to sell her husbands property while he was in the mental ward. .... ends up she married him in vegas, only one year ago, and had him commited while he was sane
weird situation, but a good detailedm research find and solves most issues.
due the diligance
I'm half expecting Lufos to check in and recommend, tongue in cheek of course, a good NYC hit man for the old fella's wife. Oh, and Mojomike's on to something. Have you checked the title? So far it sounds like you're simply trusting that dear old dad owns it with only the one mortgage lien; have you checked for other liens?. Might be worth at least a trip to the recorder's office (or web site, if you're lucky) to see if there are any other fingers in the pie. Might explain the multiple foreclosure notices and/or the hestitation of the other investors to look further. I know I sound a little negative, but a word to the efficient is sufficient. Good luck!
I don't know if this would work, but could you buy the note from the mortgage bank. Then when the property goes past due, you can forclose?
But that might not get you anything if they decide to sell it, although if they decide to sell it you'll be more in the loop.
Great suggestions from all! Sadly, I'm putting this deal on the back burner until further developments. Some replies:
1. The bank will only talk to the father, who's unable to.
2. I could find out if other parties hold claim to title, but will wait until I hear that the daughter has POA and can sell to me. If she fails to get the POA, I'll confirm title, contact the out-of-state father & stepmom and will offer to buy from them directly, while paying off the daughter her desired $30K.
3. Interesting story regarding the wife having her hubbie committed. If I can sort through all the twists and the numbers still add up, then I don't mind the drama.
4. Uh, we'll leave the hitman on the golddigger idea as a last resort for now.
Kidding.
Thanks for everyone's input. Who knows, the story may yet have a happy investor's ending.
The wife needs to understand that you are there to save her husbands credit, and help him out of a sticky situation. Have you talked directly to the father?