What Is A Quit Claim Deed Of Trust In Foreclosure
A quit claim deed foreclosure is a legal document that is used to transfer legal title in real property. The person or entity undertaking its real estate interests is called the grantor, or owner. When the quit claim deed of the property is executed and filed, it transfers all rights that the grantor has with regards to the property to a designated receiver, and sometimes, the title to the property itself can be sold to cover the debt of the designated receiver. This type of property sale is referred to as a foreclosure sale. In some states, https://non-judicial-foreclosure-states-list.webflow.io/posts/non-judicial-foreclosure-states-list this type of sale is referred to as a trustee sale.
In this type of foreclosure, the mortgage company and the trustee will work in conjunction with each other to sell the property at a public auction. In most states, the mortgage company retains the first right of refusal to the proceeds from the auction. The mortgage company will inform the trustee that the quit claim deed has been transferred and that they are now the owners of the property. The trustee then will sell the property to satisfy the debt of the designated receiver.
It is important to note that in most states, the mortgage company is not allowed to participate in the foreclosure proceedings or be present during the process. It is also prohibited from taking possession of the home or property without the express written permission of the mortgage company. In addition, if a loan is paid in full, the mortgage company cannot file any liens against the title of the property. Any monies paid into the escrow account must be applied to the balance of the unpaid balance of the debt.
At the conclusion of the process, the title company will offer you a deed of trust in exchange for the unpaid balance of your mortgage. The deed of trust typically states that the mortgage company shall not attempt to collect the money owed to them from you until the delinquent payments have been fully satisfied. At this point, the title company will pursue the remaining debt by filing court actions in an attempt to recover the funds. In many states, the mortgage company is also prohibited from allowing the trustee to pursue the remaining debt on your behalf. A Quit claim deed foreclosure can be very complex and it is recommended that you consult a qualified attorney who specializes in foreclosure to ensure that your rights are protected.
In the vast majority of cases, homeowners will stop paying their bills and default on the loan before the Title Company has the opportunity to take legal action to pursue collection. However, if the homeowner does not appear at all of their scheduled mortgage payments, the company may choose to start legal proceedings against the homeowner. At this point, it is important to note that many states allow the mortgage company to immediately pursue the delinquent payments on the homeowner's title. At this time, the company will take over the negotiations process with the mortgagor and engage in the process of attempting to sell the property as quickly as possible. If the mortgagor fails to pay the mortgage company back in a timely manner or fails to pay the company in any other manner, the company has the right to execute a quit claim deed of trust on the house and force the homeowner out of the property.
Many people mistakenly believe that they are protected from this type of foreclosure because of the presence of a deed of trust. The truth is, the mortgage company still has complete control of the deed of trust in an effort to complete the foreclosure process quickly and cheaply. Once the mortgage company sells the property on the foreclosure auction, the deed becomes the property of the bank can pursue the homeowner for payment even if there are remaining unpaid fees. It is always recommended that homeowners check their local laws before taking action to stop foreclosure using a quit claim deed of trust.
