They don't necessarily have to be the owner to convey the property.

You can certainly transfer a property with a clouded title, the value however may be severely effected and it will be a distressed value not meeting requirements as to market value.You may also effect financing in the future, an owner is then limited as to the security interests they may convey, this may or may not be overcome with the lender's title policy.

Just remember you will still have to give a discount over comparable properties because you can only convey title with a Quit Claim and that will be a big turn off.

You can also get the seller to prove they have good title to convey and have them pay for it, you pay for the policy.As to the deal, yes, it could be a sub-2, any heir can assume any existing mortgage, but you do have the same issues with the due on sale as if that seller were the original borrower.I have also drafted purchase contracts, gotten future advance notes signed by the seller to fund rehabs, got a construction contract to perform work at a set price which can be financed as well.

Check the county's deeds and see if there was a deed conveying the property from the bank back to the owner.

Either way, the trustee has legal capacity to sign a deed conveying that property out of the trust.

I read lots of seller websites and am always looking for the best and clearest way to convey the message.

Just looking at other examples where a deed or equitable interest was not conveyed there was no tax due.

My attorney told me not to worry as it was clearly "fraudulent conveyance."

Thus, if you conveyed a quit claim deed to a 3rd party that person would only be getting what you own.