Posted by AWWmi on December 29, 2000 at 21:11:40:
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Grant Deed - Posted by jay
Posted by jay on December 29, 2000 at 14:31:42:
i am in the process of selling my rental property. I met an local investor here in the Southern CA. area and i am going to escrow today to grant deed the property to him. I told him that the house is worth about 75K. There’s a 1st on there for 55K and a second for 22K…and it has been rented to a good tenant who has occupied the property for about 2 yrs. My question is, once i grant deed the property to him, is he responsible for the 1st and 2nd on the property? or am i putting myself in a bad situation?
Whoa Jay . . . - Posted by JoeKaiser
Posted by JoeKaiser on December 29, 2000 at 18:42:38:
. . . you might want to think about this a bit. Once you deed the property away, you’ve lost all control of those loans which you still owe.
Unless he’s agreed to step into your shoes, those loans remain your responsibility, not his.
Sell it to him on an wrap around or all-inclusive note and deed of trust. Make sure there’s a provision in the paperwork that assigns you the rents should he become in default.
Now, he pays you, you pay them, and if he doesn’t pay, he can’t just collect the rents for a year in milk the thing to death.
Joe