Under normal conditions, you don’t want to close a property with just a Quit Claim deed, but there is an exception to this that has evolved over the last year.
Our underwriter will make an exception for VA foreclosures who are transferring with only a Quit Claim deed.
Buyers and their agents may be concerned that with a Quit Claim deed, that they may be taking on additional liability. As long as they have Owner’s Title Insurance, they should have no concerns, as the the underwriter will cover them the same as they would over other deeds.
One thing to keep in mind with all these foreclosures, though technically they are being sold by VA, it will take time for them to get the deed through the lending bank, to the VA, and then to the new buyer. This can extend the time to finalize the deal. Our processors and closers will keep you up to date on the process as it works its way through, but everyone should have a bit more patience when purchasing from the VA than in a normal file.
So, if you’re purchasing a VA foreclosure – close with Watson Title Services of N FL, get owner’s title insurance … and everyone should sleep well at night.
You can get the PDF of this tip here.
My Agent Greg 