All Forum Posts by: Andrew Angell

@Andrew Angell i think you get the idea but this is a big red flag. As said run from this. 

A quit claim deed guarantees absolutely nothing. I will sell you a perfectly legal quit claim deed for the white house and throw in a free QC deed for the Empire State Building. 

It appears they are selling securities with no mention of security laws. This is BOGUS. 

To add, @Andrew Angell, a secured loan is one in which you have direct recourse to potentially own the property. This means you hold a note and a recorded deed of trust or mortgage (state dependent) naming you as the lender.

A note alone defines the terms of the loan and is simply a promise to repay. It's an IOU and gives you the right to sue in court for the amount owed, like any other debt, but not the right to foreclose. If you sue and win a judgment against your borrower, you might never recover a dime. This is the position this company is offering you.

A recorded DOT or mortgage enables you to foreclose on the property under a default, and either own it or get paid back at a public auction. Without the mortgage or deed of trust, you cannot foreclose.

When/if you foreclose, the property listed on the mortgage will be put up for public auction. This is sometimes called a Sheriff Sale or Courthouse Step auction. The minimum price the auctioneer will accept is set by you, the lender, in accordance with the law. If the property sells at this price or higher you get repaid only what you are owed, and the successful auction bidder gets the property. If the property does not sell, you will own it. Lots, lots, lots more to this but that’s the bare minimum.

A quitclaim deed defines the current owner of the property. This too is a recorded document. Showing you a copy of a quitclaim deed is not proof of ownership. For proof, you or your title company would go to the County Recorder, or whatever they call it in your state, and request a certified copy of the last recorded quitclaim deed.

Providing you with a signed, unrecorded quitclaim deed that you can record yourself if your borrower defaults is completely unenforceable and a worthless piece of paper. If contested, there is not a judge in the world that would accept this because it subverts your borrower’s foreclosure rights, which are substantial. This is not a substitute for an enforceable mortgage.

These guys might be good payers and as honest as the day is long. Everyone here has been trying to point out your risks, however. With all due respect, you seem to be either insistent or oblivious. It’s your money, but this is not the way to lend it safely.

Syndications with established operators are fine and may be best for you. There’s a whole world to passive investing like this and it’s not limited to lending. Alternately, first-position loans to LOCAL experienced house flippers, secured against LOCAL properties, are the safest way to make a private loan as far as we’re concerned. That’s what we do.

Good luck to you, Andrew.

Ok lets go back to lending money one o one.

your confusing terms.

when you make a loan you as the lender are the beneficiary of a mortgage or deed of trust which ever is used..  The company borrowing owns the property and you are the bank or private bank in this case.  U would go through escrow / title  lawyer whatever and they will record your mortgage against the property in the public records.  the NOTE is generally never recorded is generally only signed by the borrower and provided to the title company / lawyer so that the borrower comes in and signs both the mortgage and the note at the same time.. the Title co or lawyer then delivers to you the signed note and they take the mortgage to the county and record it..  They will also do a title search to make sure the borrower actually owns it. The borrower ( this company your dealing with ) will have to provide to the title company their corporate docs to see who is legally able to sign the loan documents.
Once this is done title will ask you to wire the funds to them.. they then do the escrow function and the borrower will get their check at the closing if its a wet closing or wired later in the day or next day.. You will get the mortgage mailed to you by the county usually takes a few weeks  but its in the public records so the original is not all that important.. And the title/Lawyer will also fed Ex the note to you for safe keeping.

A copy of a quit claim means nothing no one would use that to prove they own it.. the title company or lawyer is going to do a title search and give you a title commitment in writing that will describe the land being used for the loan who owns it and any other liens or encumbrances on it at the time of the report.

So bottom line.. if the people your dealing with are offering to show you a quit claim that means zip nada nothing.. And if your suppose to just wire the funds to them .. then again your making a UNSECURED loan to a company to use as they see fit.