Legal Question in Real Estate Law in California

If I am a private investor and I acquire a mortgage note from a lender and I restructure the debt with the current homeowner, Can I be on title with them and have a quick claim in place incase of default I can have the asset quickly without forcing foreclosure?


Asked on 6/01/12, 10:42 am

2 Answers from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

This is generally not considered to be a good plan. There are well-developed, quick and easy ways to handle foreclosure and eviction using conventional deeds of trust. Co-ownership and "shelf" deeds result in problems, including a possibility that the quitclaim deed will be regarded in court as a disguised mortgage and you'll be forced to do a judicial foreclosure. There are many California cases on point. Smart private investors avoid trying short-cuts like this and stick to the time-tested procedures.

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Answered on 6/02/12, 11:38 am

I agree with Mr. Whipple. It is not illegal, but it will create more problems than it solves.

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Answered on 6/02/12, 1:24 pm


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