Note experts what do you think about pre signed quit claim deeds

[Jay Hinrichs]

I hear  many lenders require the borrower to pre sign a quit Claim deed when they fund the loan.. with the proviso if the loan goes 30 days delinquent that the lender will just file the QC and wipe out the borrower without doing any other actions.

My sense is that this is not legal or proper as its circumvents the borrowers right to cure as stated in the mortgage or trust deed documents..

@Dion DePaoli@Don Konipol   Tagging the two note experts I follow on BP.

I have now heard this 4 different times from lenders that approach me on BP looking for investor capital to fund their deals.. I then inquire about foreclosures and this is their answers.

What say you guys! or any others in BP land with knowledge or experience in this arena.. I have never done it in all my years of lending and never would

[Bill Gulley]

It doesn't matter what kind of loan it is, commercial or consumer, mortgage or a car loan with the title signed over, it's predatory lending and attempting collect collateral will be an illegal venture.

If you have made a loan like this as a borrower, go see your attorney.

Many attorneys are still operating as they did 20 years ago, not news, that's why in finance you need to see a finance type attorney who has kept current! :)