I've come across a couple of banks selling foreclosed properties through quitclaim deeds and am looking for advice on how I should proceed as this would be my first time dealing with this kind of purchase arrangement. I have read that most quitclaim deeds are unable to obtain title insurance so it's always best to have a title company run a report and make sure the title is free and clear. The ones I've found for sell have utility liens and backed taxes on them, so I'm wondering if these properties would be a great investment after paying those liens off or if there could be hidden issues that would pop up and cost me more in the long run. Any advice would be great.
While it is difficult in Texas especially at a lower price point, call a local title company. The key additional question is moving forward would they insure the property if the answer is no at purchase
That's unusual.....typically they offer special warranty deed.
I've always been told quitclaims don't establish ownership, it only disavows interests.
Like you buy a property with a partner....and one partner signs quit claim deed, so the other can sell without additional signatures.
You might check with their title company to make sure what you are describing is actually the case. Could be anyone in the chain who may have used the wrong terminology.
It is not that uncommon these days for an institution to convey via quitclaim. Keep in mind a quitclaim is no issue in many states, although it is an issue in Texas as most title companies will not issue a title policy
USDA only conveys via Quitclaim or Deed without Warranty. Additionally, many of the properties auctioned on sites such as Auction.com and others are conveying via Quitclaim