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The Mortgage and Deed You Need

A deed is a lawful instrument that awards a right. In real estate, it’s a lawful document that exchanges possession from one party to another. It’s also involved once the property is paid with a mortgage. Without this file signed by the prior owners, there isn’t any transfer of possession of the real estate. Of course, the authenticity of the signatures is crucial so a notary is always required to verify the credibility.

The document also describes the property in question. In many instances, there are referrals to government maps to guarantee there is no indecisiveness at all regarding what real estate is being transferred from one owner to another.

Title Insurance

Among the issues that can happen with a deed is whenever there are difficulties with respect to ownership. Most properties have easements that allow the area utility to put their lines into the home. This really is usually not a problem at all. However, if there is a dispute because of another deed , it may cause plenty of problems with respect to property transactions.

Mortgage lenders will more often than not require the acquisition of title insurance. When there is an issue with the title and ownership of a property, the title insurance company will be liable for any costs up to the balance of the mortgage. The insurance organization does not want to lose cash on the deal, so they will clean up any issues prior to closing.

Mortgages in California

In California, mortgages are secured by a deed that is held by the title insurance company. The way this works is not hard. Before the loan is completely paid off, the deed will be locked in escrow within a trust by a trust or title company until the mortgage has been paid off.

If the home loan is compensated off via foreclosure, the title company will allow the lender to sell the property in a foreclosure and remit the remaining balance of the mortgage to the lender. If the mortgage has been paid off, the title company will extinguish its hold on the property and exchange title to the borrower, who is the owner of the residence.

Quitclaim

The quitclaim deed is not really a deed. It’s a lawful process to disclaim a person’s curiosity about a property. The use of a quitclaim is required by title companies when a search of the real estate shows problems where the title may be clouded.

For example, a spouse may instantly gain an ownership interest in a community property state. He or she may use that interest to avoid a foreclosure by the lender since that person did not sign any loan documents. When a problem with this pops up, the spouse needs to sign the loan document or sign a quitclaim to give up all claims on the real estate.

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