Legal Question in Real Estate Law in California

Re: Grant Deeding my property

First Off, ordinarily you must notify and get the approval of the mortagee (the company you have a mortage with) before you can transfer any interest in your property. (Check your mortage documents) If you fail to notify and get approval from the Mortagee in most cases your mortage becomes would become payable in full upon transfer. Either way, no escrow company would close escrow without the mortage company becoming notified, and paid in full.

As far as a Grant Deed, by the use of this instrument you would be making certain gurantees regarding the property that are implied by law. One of these gurantees is that there are no incumberances on the res, which there are. Therefore I would not use a Grant Deed unless you are going to go through an escrow, and pay your mortage off in full.

Quit Claim Deeds are normally used in this circumstance. If for some reason you do not have to pay your mortage off in full upon Quit Claim Deeding the property, the lien would still remain on the property, and ordinarily the mortagee would commence forclosure on the property for non-payment if this in fact occured. If the mortage was not satisfied from a forclosure sell of the property, they could in fact come after you for the balance since you are the mortagor (person who owes the money)

The best way to deal with this entire situation is to do a normal sell of the property to a qualified buyer through an escrow, with the proceeds of the sale used to satisfy your mortage and release the lien!!