Note experts what do you think about pre signed quit claim deeds

[Jay Hinrichs]

I hear  many lenders require the borrower to pre sign a quit Claim deed when they fund the loan.. with the proviso if the loan goes 30 days delinquent that the lender will just file the QC and wipe out the borrower without doing any other actions.

My sense is that this is not legal or proper as its circumvents the borrowers right to cure as stated in the mortgage or trust deed documents..

@Dion DePaoli@Don Konipol   Tagging the two note experts I follow on BP.

I have now heard this 4 different times from lenders that approach me on BP looking for investor capital to fund their deals.. I then inquire about foreclosures and this is their answers.

What say you guys! or any others in BP land with knowledge or experience in this arena.. I have never done it in all my years of lending and never would

[Jay Hinrichs]

@John Thedford  not only that a QC in many states would not be insurable once you did take it back.

the proper document is a DIL