2 Part Question Warranty Deed And Deed Inluie Of Forclosure
Morning Everyone,
Could someone explain a warranty deed
pro's and con's? 2nd please explain pro's and con's
of deed inluie of foreclosure?Thsnks all snd have a
good day.
Greetings Joseph,
WARRANTY DEED -- A deed conveying the title to a property with a warranty of clean, clear marketable title.
This is what you want when you're buying a property, as it assures you of clear title.
DEED IN LIEU -- A deed given by a mortgagor to a mortgagee to satisfy a debt and avoid foreclosure.
This is where a person facing foreclosure offers to give title to their house back to the lender. The lender doesn't have to accept it. And if they do, it's still a big negative factor on the borrowers credit.
Hope this helps!
Hi Mcole,
Yes it does help I appreciate your www.imput.Thanks
again and have a good day.
A warranty deed does not ensure the property is transferred with clear title. It is the personal promise of the grantor that the property is free from encumbrances, but the condition of title is not affected by that deed.
The grantee has a right to damages against the grantor if there are defects, liens or encumbrances, and the grantor has further liability to defend the title condition.
Those liabilities of the grantor are not much value if the grantor is not financially capable of paying damages.
A person acquiring by a warranty deed should primarily rely upon title insurance or an attorney's opinion of title. A person conveying the property should not provide a warranty deed unless that grantor has a prior title insurance policy to protect against that warranty liability.
A deed in lieu of foreclosure is not a deed type; it is a circumstance (explained well before), allowing the lender to assume ownership, without the borrower having further financial liability to the lender.
A deed given to a lender in lieu of the foreclosure is usually a quitclaim deed form, without any warranty about the condition of title. The borrower wants no further liability to the lender.
However, the deed form could be a special, limited warranty, or a complete warranty deed, if the lender is not willing to accept the property without further rights to pursue the borrower for unknown title defects or other liens. That is the subject of negotiations with the lender.