Quit Claim W/leins
I'm looking to aquire a property with a quit claim deed. However the property now has a lein on it. I should be holding onto the property for some time but my question is...
If the person who created the lein(borrowed the money) dies will their estate pay for the loan that that person guarranteed?
My thought is that if I sell the property I know I'll have to repay the loan but if I hold the property in the event of the original borrowers death that esate would be responsible for the repayment of the lein? Is this correct?
The seller's death will not lead to payment of the debt and release of the lien on the land. Most likely, the Estate of the seller will claim no debt is due, because your payment of that debt was part of the consideration for your purchase of the land.
When you acquire property that is subject to liens, the presumption is that the seller is no longer liable for the payment of the debt. That is true even if the purchaser does not expressly "assume" the liability for the debt. The seller remains liable as a guarantor, unless the lender agrees to accept the purchaser and release the seller.
Well said...You are going to have to pay the lien to get it removed.
I am so confused, as I am so often reading posts here. When you say 'acquire' do you mean purchse? If so, why do you want a quit claim deed? I've seen more talk about quit clalim deeds in my few months reading this board than I've seen in 30+ years in the closing business. I personally would never, ever accept a quit claim deed for anything. I want a warranty deed guaranteeing that the person at least thinks they own the property - not saying 'whatever'.
I DO KNOW THEY OWN THE PROPERTY AND HAD MY OWN TITLE SEARCH... I'M AQUIRING THE PROPERTY FOR $1.00...!
93K LIEN VALUE + 175K. I DON'T SEE THE LOSS OR THE RISK. I'M JUST LOOKING AT THE ONLY POTENTIALLY PROB OF THIS LIEN...
DO YOU THINK A WARRANTY DEED REALLY BE BETTER IN THIS SITUATION? I WANT THIS TO BE FAST , THEY REALLY DON'T CARE.
If your grantors don't care, have them give you a warranty deed - timewise it is exactly the same
warranty more will the warranty deed do for me?
And no they really don't care, they just can't pay off the loan at this time and don't want to...
I know this sounds a little funny but the whole situation without the long story is strange, but ultimately I'm getting into this proerty basically without anything other than a $1.00. they will be continuing to pay the note... I know if they default I would be responsible but that is still ok. I have cash for the 93K if I have to.
What more will the warranty deed do for me?
I'm doing the same thing in a foreclosure situation and just got off the phone with the lenders attorny - he said it won't hurt to file quit claim and general warranty deed to cover all bases.
I have worked out a seperate deal with the borrowers which allows them to stay in the home, yet I will own th property for whatever the first and second ect... add up to. According to my title search so far, about 36k.
I also have to add the reinstatement fee the mortgage company and lawfirm ask for if I want to leave the current 33k mortgage on the property. Of course this will make the loan 'callable' but the attorny said in most cases the lender will accept your payments as long as they are never late.
The motivation of the borrowers is to stay in the property and stop the foreclosure.
The reinstatement fee is about 6k - added to the 33k note and 2nd note = 45k. Total value is about 65k. So for 6k I get about 20k in equity.
I may be able to negotiate a better reinstatement fee with lender?
Anyway, I plan to file quit claim, general warranty and maybe a 3rd lein in my companies name for the 20k equity.
sorry for rambling - any ideas, thoughts??