I bought a house with a quick claim deed help!!!

[Frank Brown]

I bought a house in Michigan from a neighbor of my family’s and he gave me a quick claim deed, and I’m new to the real estate world. Just 2 days ago I found out that the house was owned by the land bank!!! What do I do if I paid cash for the house and have already started cleaning it out and fixing on the property? Please help thanks

[Charlie MacPherson]

@Frank Brown You need to lawyer up RIGHT NOW, and be sure you get an attorney who specializes in real estate.

BTW, it's a "quitclaim" deed.  @Steve Vaughan is exactly right - a quitclaim deed simply transfers the grantor's interest in the property to you, the grantee.  If the title is cloudy, you inherit the cloud.  

You might have a case for fraud, but your attorney will help you to figure that out.  Of course, collecting on a judgment is another thing entirely.

I'm sorry you're going through this, but I hope it's a lesson to other new investors.  Always use an attorney or title company to close - and buy OWNER'S title insurance, not just the lender's policy.