When The Seller Signs The Deed Over To You, How Do They Still Have Rights?
How are they still in possession of the property? I would think, they would only have their mortgage left. Am I missing something?
Quinn
How are they still in possession of the property? I would think, they would only have their mortgage left. Am I missing something?
Quinn
You are right. They can deed you the property, assuming they have title on it, but they cannot transfer the loan to someone else without the permission of the lender.
good luck
The Mortgage is tied to the property. You get the deed, you also get the debt. Just make sure you do a title search before filing the deed. You may get more than you bargained for if you do not.
Then again it depends on the situation. Are you going to attempt a short sale or are you taking the property subject to the existing loan or what ever else may apply.
reprnted from your duplicate post:
Quinn:
Nice to meet you!
Down here in good ole jxn county MI I always make sure I get athe Deed and Pwr of Atty. + Agreement+ Estoppel Affidavit NOTARIZED and SIGNED !
I call this my CYA in case the Owner turns out to be a total loser/con-artist looking to get a hold of my cash then change their mind about the deal.
Anyway maybe I'm giving you the wrong answer...please provide more details as to what you are trying to accomplish?
Why exactly are you worried about the owner's rights after granting you the deed???
Here waiting with baited breath...
Derrick Ali
I guess I'm concerned about taking control of a property and then finding out that I don't actually have possession of the property, that the seller has changed his mind. I saw somewhere on this site that you really don't have possession of the property until the seller is paid off.
Quinn
Actually the seller has possession of the loan payments which appear on their credit report...if you get the deed, you are also a owner on the property. The seller can say whatever they want to but as long as you have the deed, your butt is covered. If you are still leary after all that you can do a "Memorandum of Agreement" and record it. That will cloud the title to the property and prevent the seller from selling to someone else (it tells the world that you have the rights to the purchase)
Make sure you have a notary on hand to notarize your docs whenever you and the seller have any agreements to sign.
Hope that helped!
Thanks rcummings,
That covers things for me, but it kind of opened another question. What would you put in your Addendum to cloud the Title? Sorry so many questions, I just really don't need to get into any trouble with these deals.
Quinn