Legal Question in Real Estate Law in Michigan
Quitvlaim Deed
My sister is two mth behind in house payment (MI). She wants to give me the house so that I can bring payments up to date and rent it out or flip as I see fit. Can I use a quitclaim deed to take possession of her home, bring payments uptodate and then own the home? what is best for me to use? I would like the home put under my realestate investmemt company.
2 Answers from Attorneys
Re: Quitvlaim Deed
Grant deeds are better than quitclaim deeds. But before you do anthing, you should take a look at her loan documents. Her loan my have a "due on sale" clause, meaning the entire loan might become due and payable if she transfers title to the house. Her lender might not be willing to take payments form you or do business wiht you. Whatever agreement you reach with her, put it in writing. You really should consult a local real estate attorney for further assistance.
Re: Quitvlaim Deed
You need to read your sister's mortgage. If it contains a due on sale or transfer clause, then when the property is transferred the mortgage balance is accelerated and due immediately. You will most likely have to get your own mortgage. Failing to do so will likely result in vacating the transfer since the mortgage company would lose its collateral if she does not own the property.
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