Getting The DEED...
So what is the deal with regards to getting the homeowners deed BEFORE a short sale?
Ron LeGrand & Jeff Kaller both advocate getting the deed, but the person that posts here who calls himself 'TheShortSalePro' says it will actually void the short sale??
Anyone?
Don't record it!
Jeffrey Adam
[addsig]
excuse my ignorance...but, how does recording a deed void the short sale?
when should one record a deed?[ Edited by millionaireinthemaking on Date 02/06/2004 ]
If you record the deed you now publicly recorded your ownership of the house.
If the bank continues its foreclosure they may expect YOU to now step up and bring the loan current because YOU now have some incentive.
The bank also doesnt deal with owners of the property in foreclosure.
You lose your negotiating leverage.
good luck,
N.
what if you put the house in a trust.
Neill7
Jeff Kaller says that if the bank does foreclose and you're on the deed it just means that your name will show up on court documentation along with the original homeowner but that you have no obligation to pay the debt because the 'loan' is not in your name. Also, if the house is sold at auction for more than the debt you get to collect the difference because you're the last one on title.
As far as whether or not the bank will deal with the actual owner of the deed, I think that might depend on the bank..? Kaller says that he's actually told the person in loss mit that he had the deed -but only because they asked him .. And they still worked with him (knowing exactly what he was doing) Apparently the representatives in loss mitigation are getting so many new inquiries from amateur investors trying to do short sales that some of them feel better knowing the investor has the deed so that the homeowner cant back out at the last minute
[ Edited by newincome on Date 02/07/2004 ][ Edited by newincome on Date 02/07/2004 ]