In A Short Sale, What's To Prevent A Seller From . . .
. . . taking a thousand bucks from the first (or 2nd, in this case) investor that comes along, while you're busy wrestling with the bank?
Sorry for what may be a dumb question, but I'm just learning, so bear with me, please.
can;t comment for the expert's books, but when I have pursued short sales, the banks will only look at a signed purchase agreement between you and the seller.
Although you can;t stop a seller from trying to sign 2-3 purchase agreements (yes, this has happened to me) the mortgage company will likely only work with you - but as you guessed it - if they caught wind there was someone else willing to pay more they'd probably shoot you down.
You'll have to gauge Sellers' integrity on a case by case basis. I've found that honesty is the best policy. Be up front about the process, the likely outcome, potential benefits, pitfalls, and how important it is to stay the course or risk losing any potential benefits.
If another investor seeks to unseat you.... offer to evaluate the offer... because in theory, aren't you offering to help the Seller to reap the best outcome?
[addsig]
Easyfix , Have the owner deed the property to http://www.you.Than record the deed your now the owner and no one can steal the deal.And the bank now has more reason to deal with you.
IT WORKS,I DO IT ALL THE TIME.
SOME OLD TIMERS WILL DISAGREE.(THESE GUYS ARE BEHIND ON THE NEW MARKET) Remember you are helping the owner.[ Edited by charlottehomebuyers on Date 07/21/2004 ]
CHB: snatching and recording the deed will most likely kill all FHA preforeclosure shorts and VA compromised sales... and many conventional shorts, as well.
in the long run, it's best to play by the rules.
The language of MOST major mortgage loan servicers' ss approval specifically spell out terms, conditions, and restrictions... which prohibit the Seller from conveying any interest in the subject property...prior to short sale relief.
So, if you are doing them your closing agents are probably violating the terms of approval.... so my recommendation is that you proceed at your own peril....sooner or later a closed deal will be audited and the Feds may come knocking at your door....
In my opinion (an "old guy"
[addsig]
charlottehomebuyers - how to you legally have them deed the home over to you when you have to go thru a title company who will then notify all the lean holders of the coming transaction. If this were true, then why does someone have to go bankrupt -- why not just deed it to someelse?
Am I missing something?
The biggest reason I hear for people filing bankruptcy is they want to stay in their house.
First rule of thumb for me is that when I buy a property from someone, they MUST leave. Some older people I have recently talked to said they didn't care about their credit nearly as much as their home.