Quit Claim it or forget the deal

7 Replies

I tracked down the seller for this property I want.  He will sell me the property for $500 bucks but only as a quit claim deed.  I checked the property and it needs about 30K in repairs.  My concern is there is a mortgage release on the property that I can see from the paperwork is a mistake but I don't know how to fix it.  If it is a quit claim deed then I know I am responsible for all of the paper work.  Is this problem hard to fix and how costly is it to fix it?  Anyone know of a good real estate attorney in Chicago, IL?

What kind of mistake is it?  I do my own searches too, but pay for a real title search before buying.

Originally posted by @Debra Steward :

I tracked down the seller for this property I want.  He will sell me the property for $500 bucks but only as a quit claim deed.  I checked the property and it needs about 30K in repairs.  My concern is there is a mortgage release on the property that I can see from the paperwork is a mistake but I don't know how to fix it.  If it is a quit claim deed then I know I am responsible for all of the paper work.  Is this problem hard to fix and how costly is it to fix it?  Anyone know of a good real estate attorney in Chicago, IL?

 Why do you believe the mortgage you found on the property is a mistake?

Are you saying that the mortgage release is incorrect or that there is some other problem?

Can you clarify the mistake?  Is there an outstanding mortgage on the property?  Or do you want to get the mortgage released?  Be mindful that if you get a deed from the seller without the benefit of escrow and title you are buying the property subject to all title and lien issues.  These include, but are not limited to: mortgages, liens and debts of the seller, past due property taxes, code violations, etc.

Sorry everybody for lack of response and thanks for the help and the questions.  I got really sick shortly after I posted this and haven't been back on the site again until today.  Let me try to clarify the questions raised.

The current mortgage release that is on the property has a different address real address but has the PIN and property description of the property I want to acquire.  I spoke with the lady with current mortgage release and she agrees with me that the paper work should have been done for her property and is willing to do what she can to clear it up.

Now for the property I am trying to acquire.  I did do a real title search on the property and all of the property taxes are paid up.  It is empty so I do not need to try an evict anyone.  The old mortgage company is the one giving me the quit claim because they went bankrupt and because of the mortgage release missed that it was their possession so can not reclaim it under the penalties of their bankruptcy.  They still are listed in my state as a business in good standing but only to clear up issues like this.  In the letter it states that the money I am paying is strictly their cost for fees associated with the transfer of the property and they aren't making any profit from they sale and all they are guaranteeing me with the Quit Claim deed is any interest they have in the property so I thought that would be any mortgage that was owed to them.

The house was foreclosed on before the mortgage company went bankrupt and they were awarded possession and the judicial sale order.  Since they are bankrupt they said they are not pursuing the remaining balance on the house with the owner that the foreclosed on and since this asset should have been included in the bankruptcy that is now discharged with the court they cannot make a profit on a sale of the property.  As a new investor this is well beyond my scope and I am just trying to see if I should move forward or leave the property alone.

If there are still questions about this post please ask.  I will be back on everyday now.

Since you don't have enough experience to analyze the title situation, you really need the benefit of title and escrow.  Call a title company and ask what they need from the lender and the former owner (if anything) so they will insure it.  The foreclosure may or may not have wiped out certain debts against the borrower.  Title may or may not be willing to insure it.  Let title look at the entire picture and look at the quit claim and letter that the lender is willing to provide.  Better do it now than when you try to sell or refi.

Thank you so much for that information.  I will definetly call them today.