QCD In Escrow To Secure Wrap Mortgage?
Has anyone ever heard of putting a QCD in escrow (not the warranty deed) to secure a wraparound mortgage (or any type of owner financing for that matter) in order to avoid the time and cost of foresclosure? The atty would have instructions to execute the QCD if the wrap falls more than _ month(s) behind...
Any legal (or other) reasons why this could not be done? Is anyone doing this?
JohnCl
Does anyone have any ideas about this?
JohnCl[ Edited by JohnCl on Date 08/07/2004 ]
I'd talk to your lawyer about this. He may have a better idea.
One problem I foresee is the buyer might, finding himself getting into trouble, sell & deed to somebody else before your lawyer could record the QCD he's holding.
If this were to happen, remember the first deedholder to record his deed would have the title...and if that was NOT you, then you'd have to go to court against your delinquent buyer and really wouldn't have any rights against his innocent purchaser.
So a recorded REC or D/T might serve your purpose better because then IT would be on record and a big cloud on the title.
[addsig]
You took the words right out of my mouth John! I dont think it would work, as they would still foreclose.
Best Riches,
Jeff Adam
[addsig]
REC= real estate contract
As I said, the buyer is the one at risk because seller could conceivably deed to somebody else & put the screws to you.
[addsig]
JohnMerchant,
I don't understand. I am the buyer. I will have the warranty deed recorded in my name at the courthouse. How could the seller deed to someone else?
JohnCl
i think what he trying to say is that ownership transfers via warranty deed.. owner financing is via wrap around mortgage and quit claim deed back to original owner in escrow until it gets paid..once it gets paid, instructions in escrow say that qcd is to be destroyed and not recorded...
lp1,
Well said. That is exactly what I was trying to say/do. If the warranty deed is in my name then I am safe. Maybe the instrument in escrow should be a warranty deed back to the seller instead of a QCD to be destroyed as long as I, the buyer, complete?
Does anyone have any concerns about doing that or know of a better way?
JohnCl