Help Save My Deal - Loan and Deed Names Different

6 Replies

Hey forum,

I am not versed in this situation and am looking for some quick options to close a deal here....

Property X has a mortgage balance of $75,000 in the name of the Husband. 

Property X has a quit claim deed in the name of the Sister of the Wife (deceased).

Background details are like this...

Husband and Wife divorced. Husband quit claim deeded the property over to Wife. Wife has clause to remove Husband from loan within 2 years. Wife passes away within the 2 year span and quit claim deeds the property to here sister.

Sister and Husband are not on great terms. Sister is waiting for Husband to pay it off, which of course would leave her the sole owner. 

BEFORE I go to the Sister, I wanted to get my best approach in order. 

There is always the option of simply offering cash to satisfy the loan and also take care of the Sister. Example: Cash offer of $85,000. Covers the $75,000 balance and leaves $10,000 for Sister to walk away with.

I'd like to be creative here and explore other methods of acquisition. Any thoughts?

If what you say is accurate, the husband doesn't need to sign the deed/purchase agreement. You just have to pay the sister enough to pay off the mortgage, and satisfy the sister.

Does the deal have room to offer an additional $10000 to buy out the owner? Just because someone is willing to sell does not make it a good deal.

I'm just speaking from experience, make sure all the numbers make since before mankind any offer. What the guy owes on the property is not your problem, you need to make sure it's a good deal for you.

I'm all about creative strategies and even self-closings. I self-close most of my clean and easy creative purchases.  

The best thing I have found with potential title and vested interest problems are clean transactions.  Cash-out, title insurance, the whole 9. Leave nothing to chance.

That's IF it's a good value play as @Christopher Dumelle points out.  This sounds like a drama-filled mess.  Is it a good deal number-wise @Dennis Pressey Jr ?

Wow! Lots of quit-claim deeds. This could get messy. You will want a title insurer involved. That chain of title is probably nothing unusual these days, but those not educated in real estate matters don't know the issues that quit-claims can cause versus warranty deeds.

Don't try to cut corners on his one. If you decide to pursue the deal, have an attorney AND a title company - and LISTEN TO THEM! - lest you end up in a mess when you go to sell.

Originally posted by @Dennis Pressey Jr :

Hey forum,

I am not versed in this situation and am looking for some quick options to close a deal here....

Property X has a mortgage balance of $75,000 in the name of the Husband. 

Property X has a quit claim deed in the name of the Sister of the Wife (deceased).

Background details are like this...

Husband and Wife divorced. Husband quit claim deeded the property over to Wife. Wife has clause to remove Husband from loan within 2 years. Wife passes away within the 2 year span and quit claim deeds the property to here sister.

Sister and Husband are not on great terms. Sister is waiting for Husband to pay it off, which of course would leave her the sole owner. 

BEFORE I go to the Sister, I wanted to get my best approach in order. 

There is always the option of simply offering cash to satisfy the loan and also take care of the Sister. Example: Cash offer of $85,000. Covers the $75,000 balance and leaves $10,000 for Sister to walk away with.

I'd like to be creative here and explore other methods of acquisition. Any thoughts?

 A QCD isn't in someone's name Dennis, it grants title to someone, not picking but the grantee gets title interests held by the grantor. Sounds like you're saying the husband granted title to to wife, then wife to ex sister-in-law, then wife died. 

Well, the only owner is the sister. 

The lien follows title.

If husband has possession, that's another matter, eviction, he is not in title. If he is paing the note it's rent and still a debt to him.

You have to buy from the sister. :)

Thanks everybody. 

I figured going straight to the sister would be the best bet.

Also, yes the deal could be very good. Depending upon condition of the property, however first thing is first...the situation. Never seen such a situation.

Thanks for the warnings and input. We will see how the sister feels about selling.