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?..to 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.