Little known ways to transfer property ownership

Due to challenging circumstances that happen unannounced, often, or sometimes causes property owners to default on their mortgage, property taxes, or any other financial responsibilities.

As a result, property owners must sell their property, house, or land in some cases while they decide to sell their home in others. In either case, the seller transfers their property to a buyer using a deed. A deed is a real estate document that:

  • Identifies the buyer (grantee) and the seller (grantor)
  • Identifies the purchase price
  • Provides a legal description of the property
  • Is signed by the person transferring the property. Note: A notary public must notarize the seller’s signature.

Types of Deeds

  1. Warranty Deed
    1. It is used when the seller guarantees the ownership and clean title of the property to the buyer.
  2. Quitclaim Deed
    1. It is used when the seller does not guarantee ownership and clean title of the property to the buyer.
  3. Deed in lieu of foreclosure
    1. It is used when the seller defaults on the mortgage or property taxes and cannot pay the debt. Also, the seller does not offer a guarantee.
    1. If the property, typically a house, is in excellent condition, meaning minor to no repair, mortgage lenders release the owners of their mortgage obligations without foreclosing. Although it is recorded in the owner’s credit report, the impact is less severe than a foreclosure.
    1.  If the property is in a horrible condition, real estate companies such as DT Swish Home Solutions purchase these types of properties. Unlike mortgage lenders, this transaction is not recorded in the owner’s credit report.

Are you still not sure of which deed to use, or do you know someone who is not certain as well?

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Credit: FindLaw ; Rocket Mortgage