Help with cash deed to previous bank owned property

Help with cash deed to previous bank owned property

Alecia S.Pro Member
Mandeville, LA · Member since 2018 · 42 posts · 7 votes

I recently bought my fifth rental property from the bank and have a cash deed. We are currently renovating the property and a man shows up and tells us that he still owns the property and has a grant from the habitat store for 40000 to renovate the property. I have a cash deed on this property. He is the person who had previously owned it. I told him he needs to talk to his mortgage lender/bank who sold me the house. I was planning on proceeding with the renovations. Should I be concerned with this man showing up?

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  • Flipper/Rehabber · Member since 2019 · 61 posts · 22 votes
    7y
    You did the right thing
  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    7y

    I assume you got title insurance?  I assume he is just a case of “too little, too late”.....he had delusions about keeping the property and fixing up, but it got foreclosed on.  He probably moved and never received the actual foreclosure papers, not that it matters.  You might check with the grantor of the grant to make sure they don’t mistakenly try to put a lien on it.

  • Specialist · Owings Mills, MD · Member since 2017 · 485 posts · 415 votes
    7y

    @Alecia S.

    Anytime anyone has the possibility of a valid claim on a property, you run the risk of having "a cloud" on the title.
    . Make sure your record the deed immediately if you have not already.
    . If you used a title company, verify your title insurance
    . Stay on contact with the previous owner, in case you end up in court you will have his contact information

    To my knowledge The Habitat Store also known as Habitat for Humanity does not give out 40K Grands or any grants especially if they have a Foreclosure

  • Alecia S.Pro Member
    OP
    Mandeville, LA · Member since 2018 · 42 posts · 7 votes
    7y

    Thank you for the advice. I will follow up with title company tomorrow.

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