Posted on: 05th Jan, 2010 03:41 pm
this guy is sellign a condo and wants to do a quitclaim. He says there is 10 years left on the mortgage. He even gave the monthly mortgage amount. My question is......who is on the mortgage? If I quitclaim the condo is it mine. He said he got the condo from another person who was about to go into forclosure so the guy quitclaimed the condo to him. is this on the up and up???
first things first, get a realtor involved to represent you and help you avoid any pitfalls. if the seller doesn't have a realtor/listing agent, you may need to consider paying your realtor for his time.
secondly, what you're describing may not be entirely legal, but it exists. basically with a quitclaim, you wind up the legal owner of the property, but your ownership is subject to any other existing legal claims on the property. in addition, the person doing the quitclaim may not even be the current legal owner!
so the next person you need on your team is a title company. the title company can do a title search to verify who is the current legal owner of record and any legal deeds of trust that are encumbering the property.
if you did take the property subject to the current loan, that loan may have a due in sale clause that allows them to foreclose on the property and take it from you if you can refinance and pay them off. leaving you with a loss for any money you paid the current owner to purchase it.
or, you may wind up involved in a chain of payment where you pay the person who sold it to you, they pay the previous owner, and the previous owner pays the mortgage. any break in that chain could also cause the property to enter foreclosure.
my advice, seek legal and professional advice from local experts and be willing to pay for their time. it will save you much heartache and potential loss.
secondly, what you're describing may not be entirely legal, but it exists. basically with a quitclaim, you wind up the legal owner of the property, but your ownership is subject to any other existing legal claims on the property. in addition, the person doing the quitclaim may not even be the current legal owner!
so the next person you need on your team is a title company. the title company can do a title search to verify who is the current legal owner of record and any legal deeds of trust that are encumbering the property.
if you did take the property subject to the current loan, that loan may have a due in sale clause that allows them to foreclose on the property and take it from you if you can refinance and pay them off. leaving you with a loss for any money you paid the current owner to purchase it.
or, you may wind up involved in a chain of payment where you pay the person who sold it to you, they pay the previous owner, and the previous owner pays the mortgage. any break in that chain could also cause the property to enter foreclosure.
my advice, seek legal and professional advice from local experts and be willing to pay for their time. it will save you much heartache and potential loss.