Can You Quit Claim Deed A Subject To Home To A LLC.
I was reviewing a deal and this came up. Is this possible or is it better to quitclaim deed it to my name and or "a nominee" instead of the LLC? I plan on selling it on assignment and i wanted to make sure i wrote the contract/quiteclaim deed up correctly.
summergirl,
The first thing you do is take a deep breath, hold it, count to ten and then exhale and relax.
I know I did after I read what you wrote.
I still have questions and rather than go through them on the board right now, I will private message you my phone number or private message me yours and we should talk.
We can always post what the final outcome is, but for right now, the way I explained what I would like to do is probably the best way to go.
John $Cash$ Locke
[addsig]
Is this a wrap-around mortgage? Meaning the person that sold it to you bought the property subject to and is now selling to you with owner financing even though the subject to mortgage exists. Does that make sence?
estateXchange,
I talked with this young lady on the phone at length about her problem and asked her to report back on what she found out with some required due diligence on her part to find out what the real deal was on this property.
Thus far I have not heard back and hopefully this is not because the problems with this deal were to where she could not overcome them.
It is not a wrap, however, seems the problem is who is really foreclosing on the property, is it really the investor or the lender due to some filings she found involving the lender and a foreclosure company not associated with the investor.
John $Cash$ Locke
[addsig]
John,
That brings up an interesting point. What happens if you buy a home Sub-to and the person you bought it from goes down the tubes to the point where their bank is coming after the home. 1st can they do that? Second what happens to your buyer if that happens? I have not thought about that. We sometimes are helping people who are not in good shape. Am I protected because I have the deed?
Also what happens when your seller starts to give you a hard time about taking them off the loan. I have them sign an agreement saying they know that they are still on the loan and it is tied when the new buyer refis. He calls and emails all the time wanting to know when it will be out of his name. The loan is great 5% low payment. My first buyer flaked and it has taken 3 months to get another person in who could make it to the end. Sorry way off subject.
J
estateXchange,
Yes, the lender can invoke the due on sale clause for the return of the property. They always have this option, however in the case J described it is the seller that is wanting the loan out of their name.
The payments are being made in this case, so unless the seller calls the lender and says they sold the house, which would cause them to mess up their credit should the lender decide to call the loan. The loan would still remain in their name, however the deed would still remain with J. They would be the party the lender forecloses on for the return of the property, not a very smart move on their part.
I do know of a few cases where the seller called the lender and reported this and the lender said it is our "option" and we choose not to take the property back. Guess they felt why call a performing loan, as if they do not have enough foreclosures on their hands already.
J.
I have not heard back from this lady, I gave her my recommendations on how to pursue this matter with the information that she relayed to me. Yes, it is a mess.
John $Cash$ Locke
[addsig]
Anything new on the deal in the original post?