Quit claim deed.

jsackett · Joined: 18 Nov 2008 Posts: 3 2.19 Dollars($)

Hello,
My husband and I are looking into buying forclosed property due to tax forclosrue. The city has cleared all debts due to non-payment of taxes by owner. another party bought the property from city and is selling as is with a quit claim deed. If we purchase the property what does this mean for us? Will we be able to put this property in our names and if we wanted to remodel or anything would we be able to take out a mortgage on the said property. Also will anyone be able to make claims on the property as the city has already cleared it. Also how do we find out if the owner now has put any leans against the property or will the quit claim take care of that. I guess my questions is what is it and what do we do with it once we purchase it or before??? Help !!!

gmakerley · Posted: Tue Nov 18, 2008 2:06 pm Post subject:

in the current real estate/mortgage market, you'll likely find it difficult to refinance such a property very quickly - at least with conventional type financing.

as for liens on the property...you need to engage an attorney. i will never understand the rationale that says "let's don't pay a lawyer; after all, we can't afford it" when in fact you truly CANNOT afford to have a lawyer.

an owner couldn't/wouldn't put liens on his own property - i don't quite get that part of your question. but all a quit claim deed does is transfer "whatever interest" a party has in a property. what you need to be able to verify is that the person in question actually owns the property.
yes, you can do that yourselves if you know how to do it.

and i took it for granted that you don't have an attorney because the questions you've posed are those which are best answered by an attorney. i figured since they're appearing on this forum, there must not be an attorney involved. forgive me if i'm wrong, please.

as for the last question...you can't do much with the property before you purchase except homework. after you purchase, you'll have difficulty obtaining conventional financing; but you may find some hard money lenders willing to help you out.

jsackett · Joined: 18 Nov 2008 Posts: 3 2.19 Dollars($)

You are correct we do not have an attorney and will be paying cash for said property. Will we be able to get a regular title for this property I guess I am confussed about the whole process of quit claims. what I mean by leins is what if he used the property as collateral or something like that? Thank-you for your quick response.

gmakerley · Posted: Tue Nov 18, 2008 2:17 pm Post subject:

you need an attorney...as i mentioned, if you know how to look up the transactions on the land records, you can find out if there are any liens. but those liens would be due and payable on sale...but you have no way of knowing yet (do you?) that the "owner" is actually the owner, do you? that's where legal counsel comes in handy.

this is a big deal - not like you're buying a bicycle at a tag sale - and you need protection from not just devious practices, but also from errors. i am not a lawyer and i've known some boneheads in my life who practice law, but i still say you need one.

jsackett · Joined: 18 Nov 2008 Posts: 3 2.19 Dollars($)

I have went to the clerk of courts and found that he is the sole owner of the property which he bought from the courts. he also has a water bill that would come with the property with back taxes for last year. A total of about 5000 with the house and taxes. what this guy does is go to city sales purchases tons of forclosed houses and lots due to back taxes and tries to make a buck. One of the properties is one I would like to have. I have done some research but guess I will approach an attorney on this. thanks again

smithsussane · Posted: Tue Nov 18, 2008 8:01 pm Post subject:

Hi jsackett!

Welcome to forums!

Its good that you decided to hire an attorney. If you want to know if the property has any kind of liens or not, you can involve a title search company for it. This will help you to know the details about the property.

Feel free to ask if you have further queries.

Sussane

Posted: Wed Nov 19, 2008 6:49 am Post subject:

Sussane,
A question about title search companies. Where can you hire a company like that? My town is so small Not sure if I should go through the real estate agent who is selling the houses for him??? Any info would help first time doing and am unsure.

gmakerley · Posted: Wed Nov 19, 2008 8:14 am Post subject:

i know my name is not sussane, but here's my take on the question anyway. you can use your yellow pages or a google search on the internet and you'll likely find a title company or attorney or a qualified someone willing to help you out.

realtors might know of competent searchers, though mainly through attorneys' offices they work with, i surmise.

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