Quit Claim Deed And Chain Of Title
I have a property that the owner has quit claimed to me. I have not yet recorded the deed as I am unsure of the seasoning of chain of title. I intend on rehabbing and selling. Should I buy them out or record the deed and sell?
Also, this couple intends on filing a chapter 7 when this is complete. If the home is deeded in my name and I make money on the sale will the trustee come after me for any equity if I do just the quit claim? Thank you in advance for your reply :-?
Record your QCD NOW, before the seller decides to sell to somebody else and that B records before you.
As for any BK trustee coming after the property, that is extremely unlikely.
I just recently received a lot of literature from a national credit agency (why, I have no idea) on this issue, and the message was very clear that only very rarely, to the point of almost never, does a trustee force a previous grantee or paid creditor to return that which he has been granted or paid.
The message was intended for those aggressive creditors who have received a "preferential" payment, ahead of, and ignoring, all the other creditors....telling them, in effect, "go to it boys, since you can keep all you can get, go get it ! "
Unfair to the other creditors? Maybe, but zobitte !
The literature I got said that even if you take the payment or property now, and you are later sent a demand letter from the BK trustee (when the BK is filed), to the effect that you must immediately give such received assets back to the BK trustee...you should contest that under the BK rules and you'll win and NOT have to repay or give back those assets..
Pardon the above long-winded sentence, but I couldn't find a good breaking place.
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Why do people transfer title by Quit Claim? I don't get it.
Quit Claim is used to correct title. It is NOT used to transfer title. Anyone can quit claim a property to you -- *I* could quit claim that property to you.
The title company might buy it, but a much more certain way of transfering title is to get a warranty deed or a grant deed (depending on your state). If you only have a QC deed, you need to go back to the owners and get a REAL deed. Talk to your local title company and find out what they require in order to insure the transaction.
Thank you so much for the information. I am thinking along your level.
Reason a QCD is so often used, is the S is really giving his RE away, so why would he warrant or guarantee anything?
It's like your making a gift of anything to Salvation Army & their telling you: "Well, thanks, but we want a guarantee of its condition before we'll accept it ! "
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I'd strongly suggest you spend some time reading the articles & posts on short sales, then come back and ask this question.
In short, as long as you're fully disclosing everything, taking advantage of nobody, defrauding nobody, and doing what you say you'll do you'll be ok.
And by the way, usury is the loaning of money at a rate that is higher than a particular state has established as its max...so you'll know if you're doing that, and if you are, then you're going to be looking for trouble.
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Thanks JohnMerchant
I have a better grasp now of the idea of usury.
Niceguy1.