How To Do A Quick Deed Sale?

[matthewh18]

I was told by someone that I could find a foreclosure and do something called a "Quick Deed" Which was explained to me, as assuming the loan payments on a foreclosed home. If this is true how do I go about doing so. Below is my e-mail in which you can e-mail me at. I appreciate any help I can get. I have been trying to buy a home for 6 years now.

Regards,
Matthew H.


(deacont1959@verizon.net)

[BrooklynBroker]

Nothing personal, but anyone trying to buy a house for six years is probably not trying to buy at all...

Quick claim deed is usually used for other purposes. though yes, you can get a house in foreclosure this way. Why not simply buy a house in foreclosure from the owner and get your own mortgage?

[matthewh18]

I was simply weighting the options.

[BrooklynBroker]

I was simply weighting the options.

I understand. Depending on the state you're in, there may be some advantages in using quick claim deed. Perhaps, in those states with fast foreclosure procedure. No advantages in NY - here owners in default enjoy up to 20 months "rent-free" living. You have plenty of time to get a mortgage.

Maybe others will see any advantages - I don't.

[InRealEstateSolutions.com]

Even if homeowners had 100 months of "free" rent, they would still wait until the last month to do something about it, so the length of the foreclosure process has nothing to do with it...

As for buying with a quit-claim deed... what is involved is actually fairly simple.

1: Fill out a proper quit-claim deed (legal description of property, correct legal verbage, grantor/grantee, etc), have the current owner(s) of record (aka the Grantor) sign the deed, get it notarized with two witnesses.

2: Record the deed with the county recorder's office. You will incur recording fees, and doc stamps (that's what they call it down here) which can be thousands of dollars depending on the price of the house.

3: Make back-payments on the mortgage and ***any back-due taxes***. Some will suggest you let the lender know that payments will becoming from you; others say keep them in the dark. This gets into the due-on-sale clause in the mortgage. Do a search on "due-on-sale" for the issues regarding this.

4: Cancel existing insurance and get your own, or get added as "additional insured" on the current policy.

The two biggest issues when doing this are the "due-on-sale" mentioned above and doing a title search. Make sure you do at least a preliminary title search so you know about any and all taxes, assessments, and liens on the property along with their current payoff amounts (not just principal balances). Just b/c they owe $100k on a first mortgage doesn't mean they don't also have a $20k tax lien and $15k contractor's lien. A title company can pull all this together for you.

You will also have to have an Authorization to Release information so that the lender will speak to you. Otherwise you won't be able to get information about the loan. This typically is a form with the borrower's name, SSN, loan #, lender name and contact info. and your name and contact info. It basically tells the lender that the borrower authorizes the lender to talk to you regarding the loan.

Have fun!

[Rich_in_CT]

Let's start with why you can't buy a house. Tell us a little about your background and attempts to buy and we can do our best to assist.

[matthewh18]

Well first it was because of the Credit, And then because FHA said My parents and I did not make enough income annually. But now we exceed the Annual Income, and I do believe we have good credit. However we were looking for the easier options first hand, Then if that proved unsatisfactory then go for the last resort. I'm new to this stuff and hardly know what I am doing.

[Rich_in_CT]

I highly suggest you find a competent real estate agent to help you as it seems you've been fumbling in the dark for 6 years with no hope of finding the end of the tunnel.

[wikkideclipse]

Search on an MLS?


(http://getmoreoffers.com/)

[matthewh18]

That site does not serve my area, I'm in Virginia.

[Rich_in_CT]

Search on an MLS?

http://getmoreoffers.com/

Search on the MLS for what? I don't see what you are responding to.

[BrooklynBroker]

Even if homeowners had 100 months of "free" rent, they would still wait until the last month to do something about it, so the length of the foreclosure process has nothing to do with it...



I disagree. The lenght of foreclosure in a given state has a lot to do with pricing on foreclosures and the way one should acquire them.

Half of my office listings are foreclosures. We try to contact sellers in their first of second month into foreclosure, explain them their options. If the owner is willing to sell and property has some equity - we manage to sell it at market value. BECAUSE we do have time - say, a year.

I only hold license in the state of NY. I heard that in some states foreclosure proceedings is very fast and it takes only couple months between the moment lis pendens is filed and the moment when the hammer actually falls at the auction. In these states one may want to use quit claim deed, etc in order to GET IT FAST. Realtor from other states may correct me if I'm wrong.