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How does a quit claim allow someone to buy a property that is almost foreclosed?

Posted on: 03rd Mar, 2010 10:42 am
my neighbor is in the redemption period of foreclosure procedings. he was given $10k to sign a quit claim deed by an investor who plans on going to the courthouse and buying the property. does the quit-claim give the investor precidence in a possible bidding war? does this investor just get to redeem by just paying the loan balance outstanding and now owns the home? i am confused on how this could be legal and why my neighbor is pleased with the deal that he made. the house is probably worth the loan balance + about $20k at best.
Hi aivers,

As far as I know, it is the original borrower who will be able to redeem the loan. If the investor has the quit claim deed to that property, then he would become the owner of the property. If the investor has the quit claim deed, then he may have some precedence in the bidding war. In my opinion, your neighbor should have a word with a real estate attorney and take his opinion in this regard.
Posted on: 03rd Mar, 2010 10:37 pm
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