Short Sale & Deed
If the homeowner signs the deed over to an investor during a foreclosure, will the bank still hold a deficiency judgement against the homeowner? Also, when I receive the deed, how much negotiating power do I really have? Will the bank be more willing to work with me if I hold the deed?
dshnaidman
Yes the lender can still hold a deficiency judgement against the debtor.
You really have no more negotiating power than you have without the WD!
The lender has no reason to work with just because you hold the WD.
The lender has all rights to the subject property and can continue with the foreclosure process.
It would be wise to place the subject property under an LLC or Corp, Or better yet place it under the LLC or Corp and the LLC or Corp under a trust. Bring the contract current and go from there.
[addsig]
Thanks for your quick reply.
My intent was to obtain the deed, this way I can start marketing the property with no money down while trying to short sale the bank.
How can I place the property under a trust or LLC? What will this do for the property and the foreclosure process?
Debbie