"Quiet" the title...now a $240,000 home costed $60K???? SNEAKY

13 Replies

A young investor reached out to me for help. You will get a kick out of this:

Home: Lawrenceville, New Jersey Triplex

Situation: Investor has a "predatory" loan verified by an attorney and the attorney stated that he could "quiet" the title for $20,000

Rehab needed: Two quotes for two separate jobs totaled approximately $60k (I saw the quotes)

ARV: $240k

ADOM: for the area is 90 days...

Potential gross rental income: $3,800 (1 efficiency unit=$800, 2 3/2 units=$1,500/per)

Near Princeton and Rider University...and other Universities

COC Return Off the charts if this is real!

Even a wholesale deal like this could net $180,000...if it's real..

I advised that I would need to speak with attorney myself and have signed document explaining how he could "quiet" the title and show my attorney. 

I also advised that I would need to talk to the contractors that gave her the quotes and have her hunt at least 5 more. 

SUMMARIZE: 

$40k rehab

$20k "Quiet" the title due to a predatory loan

Total=$60k 

ARV=$240K

Rental income=$3,800/mo

What are your thoughts on this one?

From my understanding "quieting a title" is somewhat like a reverse foreclosure on the lender by the borrower for predatory lending. To me its quite confusing as there are a lot of parts to it, especially (I think) in with splitting the mortgage into different pieces and selling them off in packages on the seconday market. I'm definitely not a lawyer or know the details, but I would definitely get a lawyer yourself to review any legal documentation they have to make sure everything is legit, that is, as long as they can provide all of the necessary paperwork.

But what's the purchase price? Is the $20k all that is needed for you to become owner of the property? There has to be something that the other investor is seeking other than paying off the attorney.

Tell the "Seller" to pay back the money they

borrowed or surrender the collateral they pledged

as security for the loan. 

Stolen property is still stolen property even if a lawyer steals it!

interesting Richard, I never thought of it that way. Good point

@Drew Castleberry

 the investor just wants out. She is not interested in collecting. 

It's one of those "Seems too good to be true, but could be true..."

I have a conference call tomorrow with her "attorney".

Should be interesting.

Make sure it is not a  scam... don't send them any money...

@Andrew LeBaron

  that would be interesting.. one would want to check with your state on the laws and damages awarded for a predatory loan... I know for a usurious loan there can be damages back charged against the debt.. let us know how it comes out.

Originally posted by @Joshua D. :

Make sure it is not a  scam... don't send them any money...

I was thinking the same thing. Sometimes they are preying on your greed.

It's just like the huckster at the corner market in the parking lot selling gold plated lead jewelry by implying he's selling stolen jewelry!

You will have to sign affidavits "sworn testimony under oath" that you are the owner of the property and have rightful claim to such property.  That is the primary basis of your right to assert a claim to Quiet anyone else's claim to the property.

If that don't make you pucker up a bit, then go ahead with it.

By far the most intense deal to happen lol. 

@Andrew LeBaron ,

First, you say the fix up is estimated at $60k up top, then $40k in your summary...

It sounds to me like there's definitely a predatory attorney and maybe a predatory loan. You won't be able to take title cleanly while all the lawsuit is happening, why does't this investor quiet his own title and get released from his bad loan? 

You know what they say about deals that sound too good to be true, right?

Absolute fantasy. Someone is desperate, and grasping at straws to get out. QT is for settling mistakes, errors, finalizing other legitimate procedures(tax deed auctions), etc. and is Not for removing a legitimate lien or owner. A predatory lending case wouldn't be resolved by a QT. Sounds like an owner in default went to a "foreclose defense" attorney, was told "yeah, banks are evil, you got a good case, I can win, give me money...blah, blah, blah" and the owner has some delusions this might be true. Lots of guys down here trying to sell properties bought at HOA foreclosures (in which the mortgage survives), claiming the mortgages are invalid due to 5 year statute of limitation issues.....don't believe them either.

Originally posted by @Andrew LeBaron :

A young investor reached out to me for help. You will get a kick out of this:

Home: Lawrenceville, New Jersey Triplex

Situation: Investor has a "predatory" loan verified by an attorney and the attorney stated that he could "quiet" the title for $20,000

Rehab needed: Two quotes for two separate jobs totaled approximately $60k (I saw the quotes)

ARV: $240k

ADOM: for the area is 90 days...

Potential gross rental income: $3,800 (1 efficiency unit=$800, 2 3/2 units=$1,500/per)

Near Princeton and Rider University...and other Universities

COC Return Off the charts if this is real!

Even a wholesale deal like this could net $180,000...if it's real..

I advised that I would need to speak with attorney myself and have signed document explaining how he could "quiet" the title and show my attorney. 

I also advised that I would need to talk to the contractors that gave her the quotes and have her hunt at least 5 more. 

SUMMARIZE: 

$40k rehab

$20k "Quiet" the title due to a predatory loan

Total=$60k 

ARV=$240K

Rental income=$3,800/mo

What are your thoughts on this one?

A "signed document" from the attorney is worthless. Attorneys can't guarantee legal outcomes. Attorneys have a lot of legal theory, they say a lot of things they will do, take your money and make no guarantees.  Will this attorney work for no compensation until a lien release settlement or QT is achieved?  If not, he is blowing smoke.

Quiet titles aren't that straight forward, even if the loan was supposedly predatory.  The lender has to be served and is allowed to answer the complaint and mount a defense.  They also may choose to settle.  Regardless, I'd not give the attorney a dime.  If the attorney is so confident and knows what he's doing, he'd be asking for a 50% share in the property, not $20K.  

My QT attorney did one for a client last year.  It was for 2500 acres.  The client had no funds, not even for an expense retainer.  The client just wanted the acreage near her house for a riding trail.  The attorney took the case in exchange for 1500 acres (she won and the order granted her client 1000 acres and 1500 acres to her).  That's someone who thought they would win and didn't need her client's $20K to make payroll.  Just saying.

Originally posted by @Wayne Brooks :

Absolute fantasy. Someone is desperate, and grasping at straws to get out. QT is for settling mistakes, errors, finalizing other legitimate procedures(tax deed auctions), etc. and is Not for removing a legitimate lien or owner. A predatory lending case wouldn't be resolved by a QT. Sounds like an owner in default went to a "foreclose defense" attorney, was told "yeah, banks are evil, you got a good case, I can win, give me money...blah, blah, blah" and the owner has some delusions this might be true. Lots of guys down here trying to sell properties bought at HOA foreclosures (in which the mortgage survives), claiming the mortgages are invalid due to 5 year statute of limitation issues.....don't believe them either.

As I've said here before..... if it were possible to remove liens or transfer estate property via QTA, I would have already done it!  Me, and a few other title nerds here on BP.  I'm banking on the the attorney in this case being a "foreclosure defense" guy as well.  Those guys are nothing but trouble in my farms.  They do have full page ads and television spots but none that I've ever come across has a good reputation.  

I once got a call from a seller working with one of these clowns.  I checked the property and it had been sold at trustee's sale a few weeks prior.  No redemption rights here, no irregularity of sale.  Just an attorney who took her money and didn't keep track of the pending trustee's sale.  I told her to call him and let him know the property was gone, ask for her money back and to file a complaint with the CA bar.  That attorney sent me the nastiest email, threatening me with tort. interference and practicing law without a license. Like an angry email would scare me or shut me up.  :)

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