Posted on: 15th Jul, 2010 07:22 am
hi -
i am about to buy a property from my neighbor though a quit claim deed. i have done as much research as i can do through online resources and visits to our local assessor/auditor/recorder/treasurer's offices to understand who the owners are and what liens exist (there are property tax liens, which is why i'm buying the property before it is repossessed by the county). i'm fairly certain there are no mortgages outstanding since it's an old house that has been in their family for decades, and the house is in terrible condition and i would think they would be well behind on any mortgage payments and there would have been a foreclosure. my question is this: since i haven't done an actual title search, is there a risk that some mortgage does exist, and if it does, is there any way that i would inherit liability for said mortgage by accepting full property ownership through the quit claim deed? also, even if i don't have liability, could the lender take the property as repayment if the original borrowers don't pay the amount owed? thanks.
i am about to buy a property from my neighbor though a quit claim deed. i have done as much research as i can do through online resources and visits to our local assessor/auditor/recorder/treasurer's offices to understand who the owners are and what liens exist (there are property tax liens, which is why i'm buying the property before it is repossessed by the county). i'm fairly certain there are no mortgages outstanding since it's an old house that has been in their family for decades, and the house is in terrible condition and i would think they would be well behind on any mortgage payments and there would have been a foreclosure. my question is this: since i haven't done an actual title search, is there a risk that some mortgage does exist, and if it does, is there any way that i would inherit liability for said mortgage by accepting full property ownership through the quit claim deed? also, even if i don't have liability, could the lender take the property as repayment if the original borrowers don't pay the amount owed? thanks.
i'm flabbergasted that you took the time to visit so many offices in your locale, yet failed to do any research about mortgage liens on the home. you do know about tax liens, which is helpful, but taking ownership without any notion of the full extent of debt is just plain foolish. of course, you need to go determine if there's a mortgage or not. simply because someone has owned a home "for decades" doesn't make it likely that a mortgage wouldn't exist. people refinance, after all, at various stages in life.
i presume that by "understanding" who the owners are, you are absolutely (100%) certain that you'll receive good title with the receipt of a quit claim deed. or, at least, in your mind that's the case. but being "fairly certain" of anything is as good as being 0% certain inasmuch as there is no certainty.
as for inheriting liability in a mortgage - no...a lender won't even recognize you as owner, let alone debtor...at least until a foreclosure becomes necessary, if ever. can the lender enforce its lien if there is one and the mortgage debt is in default? absolutely, yes.
you need to do a lot more homework before making a bad move.
i presume that by "understanding" who the owners are, you are absolutely (100%) certain that you'll receive good title with the receipt of a quit claim deed. or, at least, in your mind that's the case. but being "fairly certain" of anything is as good as being 0% certain inasmuch as there is no certainty.
as for inheriting liability in a mortgage - no...a lender won't even recognize you as owner, let alone debtor...at least until a foreclosure becomes necessary, if ever. can the lender enforce its lien if there is one and the mortgage debt is in default? absolutely, yes.
you need to do a lot more homework before making a bad move.
i would be happy to research mortgage liens if that information were available to me. maybe it is and i don't know where to find it. i haven't made the deal yet so don't be too flabbergasted. time is critical due to the property taxes owed, and due to government offices only being open during my normal (very busy) working hours, doing extensive research has been problematic.
so one thing i don't understand is what determines good title? tax records indicate X and Y own said property. the recorders office says X and Y own said property. an ownership history from the assessor's office (or maybe auditor) shows how the house was bought in 1978 and ownership was deeded to X and Y in 2004. I have a copy of that deed. So beyond all that, what more can i do to be sure X and Y do indeed own the property and a quit claim deed is sufficient?
my interpretation of your response for inheriting liability is that i would never be responsible for repaying a mortgage that may exist, but if that mortgage goes into foreclosure the lender has every right to take the house from me as some form of repayment of the bad debt. is this correct?
and i've called a title company to do a title search/title insurance/deed preparation. thanks for taking the time to respond.
so one thing i don't understand is what determines good title? tax records indicate X and Y own said property. the recorders office says X and Y own said property. an ownership history from the assessor's office (or maybe auditor) shows how the house was bought in 1978 and ownership was deeded to X and Y in 2004. I have a copy of that deed. So beyond all that, what more can i do to be sure X and Y do indeed own the property and a quit claim deed is sufficient?
my interpretation of your response for inheriting liability is that i would never be responsible for repaying a mortgage that may exist, but if that mortgage goes into foreclosure the lender has every right to take the house from me as some form of repayment of the bad debt. is this correct?
and i've called a title company to do a title search/title insurance/deed preparation. thanks for taking the time to respond.
Your last paragraph makes me feel better about your involvement in this deal. Title search is an absolute - particularly if you can't make the time to do that portion of the homework (and as a layperson, you're not really qualified to do so and be certain of the results, I'm guessing). Yes, lender has a lien on that home until such time as the loan is paid in full, and lacking payment can certainly foreclose, no matter who is the purported owner of the home. Snatch it from you? Yes, indeed.
Getting the title company involved alleviates most of what I was expressing concern about. They'll solve your title issues.
Getting the title company involved alleviates most of what I was expressing concern about. They'll solve your title issues.
I am considering a purchase of land that has a lien until July 2011. If I buy Title insurance how will this protect me?
Hi kjcg!
Welcome to forums!
As there is a lien on the property, it will be difficult for you to get a title insurance. You should ask the seller to pay off the lien and get a lien release certificate. Once he or she receives the lien release certificate, then you should buy the property.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As there is a lien on the property, it will be difficult for you to get a title insurance. You should ask the seller to pay off the lien and get a lien release certificate. Once he or she receives the lien release certificate, then you should buy the property.
Feel free to ask if you've further queries.
Sussane