How did he buy a $300K property for $10K

Question

I found a property that was abandoned this year in January and was in the process of adverse possessing it. During my search I saw that Wells Fargo (WF) was paying the taxes and it looked like it was in the foreclosure process. My plan was to move in and start paying the taxes at the end of this year. BUT in March I looked up the property in the county records and it showed a company quitclaim deed for $10,000!

How in the world could this happen if the property was in foreclosure AND WF was paying the taxes?

Dennis Williams · Answer

Thank Wayne for your response. The reason I asked the question is because I didn't know. That's why I'm on biggerpockets, TO GET A CLUE!! How long have you been in RE? Me 2 yrs and have never practiced or researched the depth of foreclosures or been in a situation such as this. I wish I was born like you with ALL the knowledge right out the gate. If the question is to stupid for you to answer, then just laugh to yourself, call me an idiot out loud, but don't try and belittle someone for wanting to learn how to do the business as well as you apparently.

Wayne Brooks · Answer

To be honest, you need get a clue of what you're doing. Adverse possession in Florida for the scenario you're talking about, is for scammers and idiots. Read the law. As for the QCD, anyone can QCD their property to anyone for any amount. The mtg and foreclosure are still in place. The buyer is likely just/was planning to rent it out and collect rent until the bank forecloses on the former owner. Doing two of these qualifies you for free room and board in the state prison system in Florida. You have a RE license and don't know any of this?

Wayne Brooks · Answer

Dennis, while it may be surprising to me that someone licensed for two years doesn't know the basics of QCD's and Foreclosures ( a QCD simply transfers that person's interest, if any, to another party. All mtg.s, liens, liabilities and encumbrances remain with the property) what's more troublesome to me is the idea that someone, particularly a licensee, thinks they can simply "take" someone's property without buying it, and that if allowed, that would be a perfectly acceptable thing to do. Fortunately, and for good reason, it doesn't work that way.

Rick H. · Answer

@Dennis Williams If you were, in fact, squatting on s property with the intention of gaining ownership via 'adverse possession' I am, to be candid, astonished that you'd attempt such a bold move.Adverse possession is public policy in all 50 states, however it does come with conditions. You are/were a trespasser and illegally entered the property. That's a condition of adverse possession. However, if you were NOT paying the mortgage or taxes or maintaining and improving the property, you are/were just a common squatter.I've been in a number of AP lawsuits, on both sides. One cost me $400K out-of-pocket! I've aldo successfully completed AP and obtained Quiet Title court orders after satisfying ALL of the elements required. I've won 80%. It'll be interesting to see how Wells treats you since you've ignored them, apparently.This is not a play for newbies and should only be the tool of last resort. I'd ask where you heard the term however, since you did not endeavor to fully research the topic before taking action, I guess it's pointless. For future reference, here's the correct order: Study>find>research>act.

Dennis Williams · Answer

Rick H. Thank you Rick this response was very helpful in helping me grow as an investor. Once I saw that someone bought the property I did not pursue adverse possession.

Jon Holdman · Answer

The quit claim could have been part of a subject to transaction. Someone paid the owner $10K in cash for a quit claim deed for the property, subject to WF's loan.Adverse possession requires long time periods of open and hostile possession of the property. I'm not an expert, but I believe its seven years for FL, 20 in some cases.

Wayne Brooks · Answer

Google up Adverse Possession in the Fl Statutes.

Dennis Williams · Answer

@Wayne Brooks I can appreciate that response. Just to be clear, I would never take someones property who actually wanted the property. Having said that, base on my research at the time of this incident I did learn that once someone, other than the owner, files for adverse possession, the owner is notified by mail. I believe at that time, the owner would need to respond in one form or another (call the police) to correct the issue. Is this correct?

Dennis Williams · Answer

I really just wanted to know how they bought the property for $10,000. But I knew if I started the thread with "How did this guy buy a home for $10,000?" everyone would need more detail in order to answer the question properly.