Closing A Short Sale Without The Homeowner Present.
I have a property that is in foreclosure that I did a short sale on. I am currently waiting for the payoff from the bank, but the homeowner have since disappeared. I cannot find them anywhere. I do have the deed and the keys to the house. And I also had the residents move out of the house. Although I do have the deed, I never did record it nor do I want too. It is not wise to have your name on title when your doing a short sale. Could someone tell me how I can close this deal without the homeowners? At this point they want to be difficult. I know these folks cannot catch up on their mortgage because none of them have had jobs for at least two years and they are behind $10,000 in payments. Someone please give me a solution.
Kevo
Kevo:
Did you get a Pwr of ATTY??
Or
A RE Sales Contract signed by the owners?
Or
A Stmt of I.D. to satisfy the title co. insurance needs?
If not you may have aTUFF but not IMPOSSIBLE TIME doing any closing let alone getting a Short done.
JMHO
Derrick
Could someone tell me how I can close this deal without the homeowners?
What does this mean? What do you want to do with the RE? If you want to rent it, and you're going to catch up the bank payments, shouldn't be any problem that I can see.
If you're going to sell it, and pay the bank from your or your buyer's new loan, what's the problem?
Well no I do not have a power of attorney, but I do have two real estate sale contracts with the homeowner's name on every page. Each contract is eight pages long. And no I do not want to keep this house as a rental. It needs about $50,000 in rehab. I have a number of rehabbers who want to purchase the property. Can I still close this deal?
KEVO
I understand you didn't get a POA but what about a quick claim in the beginning of the deal, did they deed it to you If not the bank or the attorney will usually not allow for the deal to close, at least that's the problem that I have had in the past, I had to release mine and let it foreclose. however if you can locate mabe a neighbor, family member, ex-co worker of these people you may be able to at least get one of the 2, also check with the bank to see about a possible incentive for the short sale verses the foreclosure and if you are able to make contact with the homeowner fill them in on that and it has worked to motivate my sellers <IMG SRC="images/forum/smilies/icon_wink.gif"> [ Edited by ToniSchuler on Date 11/21/2003 ]
You never have a property quit claimed to you when your doing a short sale. It is a conflict of interest to you and the bank. You don't want your name to show up on title or else the bank will pull the deal.
Perhaps you need to sweeten the pot for them.
Their mail has to go somewhere. Send them a certified letter w/RRR and an address correction. Tell them that their transaction is nearly complete, and you would like to GIVE THEM A FEW DOLLARS to help them get started.
Of course, the $$$ can't be disclosed on the HUD1, but you can buy something from them, or pay them for a service...
I realize that, but what about a 3rd party?
If you have the deed, it seems like the only document that remains to be signed would be the HUD1. If the seller and mortagee are to receive zero proceeds from the sale, your title company or closing agent may allow you to move forward without anything further. This is a little messy. Would have been much easier if the seller would have signed a POA authorizing you to sign the closing statement on his/her behalf. [ Edited by jorge121 on Date 11/21/2003 ]
At the completion of many short sales, a lot of lenders will require that they receive a signed copy of the HUD-1 from both parties. One time I had the seller sign everything except the HUD-1, and the bank held up the check I sent them until I provided them with a signed HUd-1 with the sellers signature. It wasn't a big issue becasue I tracked the seller down the next day, but a little inconvenient!
So even though your attorney and or title company may allow it, this may be a required part of the Short Sale!
Best of Success,
BAMZ
Good point, BAMZ. I saw the Wizard of Oz on TV yesterday. I thought how similar short sales were to Dorothy's quest for the Witch's broomstick.
If you have the deed to the house and the owners have abandoned it, then you will have to work with the banks on your own. In this situation, it helps to have the deed and you can tell the banks that the HO abandoned the property. If the moron who answers the phone in the loss mit/foreclosure dept doesnt want to play ball, ask to speak their superivisor. See if you can just get them to release the note and dont worry about a short sale. They can go after the owner on their own. IF they wont go for a short sale, ask for an assignment.
Good luck,