Posted by Nate on March 16, 2001 at 22:20:22:
Why don’t YOU refinance and then quit-claim the property over to him. At least that way you have all your cash up front.
I agree that this sounds highly sketchy. I would advise you not to do this.
Problem with Signing Quit Claim Deed to Buyer??? - Posted by Brian Weigand
Posted by Brian Weigand on March 16, 2001 at 19:24:50:
I’m selling a few of my 4-plexes. I’m getting out of Landlording and real estate and moving to other interests. I’ve got a buyer who is interested but wants me to quit claim the deed over to him. When that’s done he’ll refinance it with his lender and then give me the proceed that’s due to me. I see no real problem in doing this creatively to help out another investor I just need to know that I won’t get burned on this sale. Another thing is if he can refinance it why not just take out a new loan?? Thanks in advance for any advice on this.
Brian
Problem with Signing Quit Claim Deed to Buyer??? - Posted by JohnBoy
Posted by JohnBoy on March 17, 2001 at 23:33:03:
One way is to draw up a note for the money he will owe you with the full balance due within 30 days! Have HIM sign a quit claim deed back over to YOU that you will hold until he pays you off. If he fails to perform as agreed, you record your quit claim deed he signed over to you to get the property back from him! Make sure you have it notarized also.
I would also use an attorney to make sure you’re properly protected doing it this way before proceeding with it. Require your buyer to pay for your attorney costs since this is for his benefit to enable him to treat this deal as a refi vs a purchase which makes it easier for him to get HIS financing.
The reason he wants to do this is because he may have a lender that will go along with this. They will treat the deal as a refi vs a purchase since he will have title in his name. I’ve done this myself in the past!
One other thing I would want is something from his lender stating they will finance this guy after taking title without requiring any seasoning of him being on title. Most lenders today are requiring 6 - 12 months seasoning on title before they will refi the property. He could have a good relationship with a local bank or lender that will do deals like this for him.
Verify, verify, verify AND PROTECT YOUR INTEREST!
Re:Possibly Another Way - Posted by Wayne-NC
Posted by Wayne-NC on March 17, 2001 at 06:06:06:
I know what the buyer is trying to do. He wants to refi at the appraised value because it may be higher than the sale price and the mortgage company uses what ever is less when it is a purchase. Maybe you could add him to the deed along with you so you both have control and then he could refi, then remove you from the deed. With your permission ofcourse.
BEWARE! - Posted by Ken (ILL)
Posted by Ken (ILL) on March 16, 2001 at 20:25:15:
Watch it! Once you sign a Quit Claim Deed, you no longer have ANY recourse… you don’t own the property!
As soon as the quit claim is signed… you no longer have ANY equitable interest. The investor can take that deed, walk out, and not have to pay you a penny!
Maybe he should do a wrap-around or take the title “subject to”. But, just remember, if he decides not to pay the mortgage, you still own the original note(s).