Quit Claim W/ Wrap Mortgage?
Recently went to one of the "gurus" seminars and while reviewing my notes came across an example that was given in regards to a wrap mortgage. In the example, the buyer assumes a motivated seller's mortgage and then finds a new buyer offering owner financing and structures a WM w/ a spread on interest and terms. The question was asked of the presenter, "What if the new buyer doesn't pay" And the answer given was "have the title co. have new buyer sign a quit claim deed so if he is 30 days late he has to leave immediately, and this avoids the foreclosure process."
From what I've read on this site, it souds as if this is NOT true.
If this is false, is there something other that a QCD that would get the new buyer out of the property and avoid the foreclosure process? Oregon is a deed of trust state, so the foreclosure process is non-judicial and very lengthy.
Any comments?
It is not legal in Oregon to have what is called a "hip pocket quit claim deed" to get around foreclosure. You could do a contract for deed instead which involves a forfeiture process that is less intensive than a foreclosure. You could also do a lease option and evict the buyer if they don't pay and sell or lease option to someone else.
The best solution is to get the buyer to put a down payment so if you have to foreclose you get the equity from their down payment.