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bank owned properties only provide qiuck claim deeds /

Posted on: 29th Nov, 2006 07:13 pm
do bank propeties only sell with quick claim deeds ? How can you be sure there is no lein against the property ?
hi vic,

it's not true the bank properties only sell with quit claim deeds. and it is not also always possible to be sure that there is no lien against the property. if you are asking for my suggestion then i will suggest you not to go for this type of purchase.

whenever, we should think about purchase, always we need to go for warranty deed. because by signing the quit claim deed it only transfer the rights of the person. it does not give any guarantee that other person does not have any interest in the property. if the other person having interest in the property has not signed the deed, then the deed is not affected.

but by signing the warranty deed, you get the guarantee that no other person has any rights on the property.

thanks
Posted on: 29th Nov, 2006 10:41 pm
Hi,

Yes just make sure that whenever you are buying such property you have a warranty deed.

Thanks,

Allan
Posted on: 29th Nov, 2006 11:16 pm
Whether you're buying from a bank, or anyone else, I highly recommend getting title insurance.

8)
Posted on: 30th Nov, 2006 04:16 am
If used a warranty deed to purchase property, if you try to resell that property you find out it has a lien on it. And you purchased from the seller direct. What are you options?
Posted on: 19th Nov, 2008 09:34 pm
Hi Arnew,

Welcome to the forums.

If there's a lien on the property, then the current owner needs to pay it off if he wishes to resell it. I understand the seller must not have been aware of the lien or he may have not paid it. But in order to avoid legal complications in future, it's best to pay it off and then resell property. By the way, what kind of a lien is it?

Thanks
Posted on: 19th Nov, 2008 10:30 pm
Arnew,

If the seller knew there was a lien and did not disclose it, the seller committed fraud. However, only means you can file a lawsuit against the seller. It doesn't mean that you are relieved of responsibility for dealing with the new lien. If the lien is legitimate, the very best or the bad possibilities is that the deal ends up in court, but it could be much worse - the property may end up with a bad title that can't be resolved.

However, never take a new lien at face value. Very often, property is sold and the mortgage is paid off, but no one goes back to the courthouse to record the release of the mortgage. This happens all the time with seller direct sales.

Good luck with it!

A buyer should always, always, always have an independent title search done and buy title insurance whether they buy the property directly from the seller, or through a real estate agent or any other way.

To the original poster: Banks sell homes with limited warranty deeds, however if their mortgage was the first mortgage any other lien is wiped out by the foreclosure except for specific types of liens which a title search costing usually less than $200 would show. There is no reason to shy away from a good deal just because it is being sold by a bank. Just be sure to check everything out.
Posted on: 19th Nov, 2008 10:46 pm
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