Quit Claim vs Special Warranty Deed?

[Bryan Hartlen]

One of our CFDs is now an REO and we have a buyer that we're going to seller finance the property to.

It was a CFD (we have clean title), it's been vacant for a few months and we're selling without a judicial foreclosure / ejectment. We're thinking that we'll write a mortgage (not a CFD) and convey title by Quit Claim deed rather than a Special Warranty Deed (just in case). Our business model is to resell the new performing note in 6 - 12 months.

As note investors, would the QCD vs SWD affect what you'd be willing to pay for a performing note (assume that it has at least 6 months seasoning).

Thanks.

[Chris Seveney]

@Bryan Hartlen

CFD's typically are transferred as QCD while notes are typically warranty deeds. If you can do a warranty deed I would strongly recommend it as it also protects you in case an issue ever does come up down the road that you were unaware of