Can you transfer title if there is a lienholder? If you do transfer the warranty deed. Is it legal?

Asked by Dixie Haynes, Rockport, TX Mon Mar 11, 2013

If you do transfer the warranty deed to a company to solve foreclosure and lienhold is unaware. Is this legal? If you do this, is there an out after papers and documents are signed??? What if company now does not have original warranty deed to file with county clerks office?

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Guy Gimenez, Agent, Manchaca, TX
Mon Mar 11, 2013
Yes, you can transfer all or a portion of interest you own to another party. Just be aware that the owner may still end up in foreclosure if the other party does not pay the note as they promise. Happens far too often, so make sure you take precautions when considering this. This is perfectly legal and is done all the time.

Once the deed is executed, then delivered and accepted by the Grantee, there is no "out clause" that would allow the owner to change their mind unless they can prove fraud of some sort.

If the deed was never filed, the Grantee would have to prove they "own" the property since notice to the world was not given by filing the document.

No offense, but something smells a little fishy here. Feel free to give me a call if you have any questions. I purchase homes all the time subject to the existing mortgage so I might be able to help a bit.
1 vote
JOSEPH E JAR…, Agent, Austin, TX
Mon Mar 11, 2013
Talk to your title company as they should be able to answer all of your questions and consult with their legal staff as well.

Joe Jarusinsky, Realtor/Master Instructor, Keller Williams Realty, Austin's #1 Real Estate Company, Ranked #1 by Buyers and Sellers (JD Power & Assoc. 2012) Call 512-261-4415
1 vote
, ,
Mon Mar 11, 2013
What worries me about your question is that there are many "companies" out there who promise to save you from foreclosure by purchasing your property. They get some $$ from you for their services, put a renter in, but never make another payment. It is one of the latest variations of mortgage fraud out there. Be careful!

Barbara Coker
NMLS# 228545
Licensed Mortgage Loan Officer
100% Home Loans All Over Texas!
1 vote
Mack McCoy, Agent, Seattle, WA
Mon Mar 11, 2013
Why wouldn't this company not have a deed?

Let's go back to basics - a deed is the instrument that transfers title. We don't transfer the deed, we write up a new one, have it notarized, and record it.
0 votes
Bill Austin, Agent, Austin, TX
Mon Mar 11, 2013
Take Guy up on his offer, call him. Guy is a wealth of knowledge. I also agree that a title company will be a good resource.
0 votes
Lara Pavanel…, Agent, Austin, TX
Mon Mar 11, 2013
I agree with other answers below, utilize your resources such as your favorite Title company, they are a wealth of information, always want to help and they generally have legal advice at their disposal.
Good luck!
0 votes
Don Groff, Agent, Austin, TX
Mon Mar 11, 2013
Wee you looking at doing an owner finance option? Title can be transferred keeping the original note in place. While just about all loans have an acceleration clause in them I do not know of anytime a lender has enforced this as long as the payment is being received on time each month.

Should you be advising your client of this option I would more than recommend they speak with a title company and a real estate attorney and fully understand what needs to be done to protect their interests. It is usually best to involve a servicing company as well so you can ensure the payments the new borrower is making on the current financing are being applied to the loan.

Hope this helps.

Don Groff
REALTOR® & Mortgage Broker
Austin Real Estate Pros | 360 Lending Group
office: 512.669.5599 mobile: 512.633.4157
websites: |
0 votes
John Crowe, Agent, Austin, TX
Mon Mar 11, 2013
Lots of folks move title from an individual name to add another, say if a marriage occurs, or do things like move homes into the names of children, a trust or LLC. Have you spoken with a title company or real estate attorney? You might go that path, they will explain options and rules.
0 votes
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