Foreclosure, Quit Claim Deed, and Consideration???????? - Posted by David Alexander

Posted by David Alexander on May 03, 1999 at 14:05:12:

What can I say always focused on the sell… Option Consideration instead of just Consideration. I do plan on doing a title search and getting a title commitment.
The previous owners after deeding the property got mad because they didn’t fully catch up the property and to the current owners(occupants)to court and tried to evict them. The judge through it out and told the previous people they had deeded the property away.

So mainly what your saying is just make sure I can get title insurance before outlaying any money.

David Alexander

Foreclosure, Quit Claim Deed, and Consideration??? - Posted by David Alexander

Posted by David Alexander on May 03, 1999 at 01:45:20:

Got a NQA property I’m looking at buying subject to for 1k.
The property was deeded to the new owners with a Quit Claim Deed. The note was never assumed by the new owner. The new owner went to assume the Note and sent in $3500 to the mortgage company by Wire which is what the previous owner said was past due. The mortgage company took the money but wouldn’t allow the Note to be assumed as there was 10k still left to be paid, the previous owners had lied.

The Quit Claim Deed the new owners have, has No Option Consideration in it. They do however have the receipts for the $3500 they wired, that the previous owner told them would reinstate the loan. Will this effect anything if I get a Deed from the New Owner.

David Alexander

Re: Foreclosure, Quit Claim Deed, and Consideration??? - Posted by Irwin

Posted by Irwin on May 04, 1999 at 07:39:25:

In addition to what Piper said, I would also have a lawyer assist me. You will have to have both owners plus the mortgage company involved in the sale and you have to do it right or you’ll have problems. Someone will also have to figure out what happened to the $3,500 that the second owner paid. These are complicated situations. You see what happend when the last guy tried a “do-it-yourself” deal, so don’t make the same mistake he did. Get help.

Re: Foreclosure, Quit Claim Deed, and Consideration??? - Posted by JPiper

Posted by JPiper on May 03, 1999 at 11:05:51:

I would assume first that when you say “option consideration” as it pertains to the quit claim deed, what you mean is “consideration”?.and that this spot on the deed has been left blank. One question that comes to mind is whether this deed has been recorded. If it has, I would have the deed pulled from the county recorder and reviewed by a title company as to whether THEY think it’s an effective deed. Matter of fact, I would do a title search in any case.

My guess would be that without consideration the deed is not effective?..but I wouldn’t guess. I would ask the title company, and ask for their suggestions. Evidently this deed was prepared by two private parties?..a situation which is always problematical because of a wide variety of possible errors in the deed? include inaccurate legal descriptions, etc. Again, do a title search.

I don’t know how the law would view this type of transaction in Texas, but in some states it is fraud to accept payments from a buyer, and not make the underlying mortgage payment. Fraud of course carries criminal penalties. I would consider giving the prior owner a call. I would mention that it’s possible that he’s handled this matter fraudulently?.but that you have a solution to HIS problem. I would then have him execute whatever documents that may be appropriate AFTER the title company has reviewed a title search. I would also expect the prior owner to cooperate in full with any other matters I might require some help with, to include providing an authorization to speak with the lender. In the absence of the prior owner’s cooperation in these matters, I would forward his name to the attorney general in Texas for their review as to possible fraud.