Unsure About Quit Claim Deed
I entered into a lease option to purchase. The home was in preforeclosure . I payed all the back payments and fees . The owners are friends and they wanted to save their credit. The bank is aware that I will be living in the home and making the payments per their permission. my credit is poor and I cant get a loan so everything is in their name. They signed a Quit Claim Deed to me wittnessed by notary . Does this release the intrest to me? or id it up to the bank to decied ? The Quit claim is not recorded.
This was all in the purchase agreement . :-? :-?
Yes, if the QCD is standard form and describes the property correctly, and is signed and notarized, it definitely releases whatever interest the signer did own...and it can and should be recorded immediately, so the grantor/signer doesn't decide to grant it to somebody else who WILL record it...unless you agreed in writing NOT to record.
he has transfered all interest in the prop. to you by signing the qcd. but it sounds as if the mort. is still in his name. if you don't pay the mort. he is still liable.....km
Kenmax is right.
Just because the bank is OK with your making the payments, don't think the original borrowers have been released from the loan. NO WAY!
Lots of misunderstanting on this issue...and many sellers have thought that just because somebody else agreed to make the payments, the seller was thereby released. NO, NO, NO.
Even if you've formally qualified and assumed that bank loan, I"d bet the sellers have not been released...now the sellers AND you are liable for the note, so the bank position's better, but the sellers are still on the note!
Thank you for your input . I was aware that the sellers are still on the loan note. I was just concerened because I did all of the paper work myself and I was told that I didn't have to file QCD, because the bank could ask for the note to be due once recorded. The sellers put the ball in my court and I came up with all the terms as if I were the seller not the buyer. They were in the process of just walking away from their home and letting it go. When I found out and made them an offer.