If I have a warranty deed to this house I am planning on SS'ng and I record it, then it goes to the courthouse steps. what happens to me and the house?
Nothing happens to you, except that you lose the house. Make sure if that happens that you don't have any money invested in the deal.
There are 2 parts: the House Loan & the Warranty Deed (or Deed of Trust). The deed is separate from the loan. And the Deed of Trust is only the Security Document for the Loan.
So, House gets sold and the person who signed the Loan has a foreclosure on their credit report (and may still owe the bank some more money, too). You lose the house and hopefully don't have any money invested.
Make sure you tell the seller that it is possible that the foreclosure still might happen. Have them sign a disclosure statement. You don't need to get sued for misrepresenting your actions.
The act of Recording a Deed, then seeking a short sale is akin to accidently shooting yourself in the foot... it might invalidate/disqualify a candidate from short sale consideration.
To execute a successful short sale, you must be forward thinking and anticipate obstacles. Generally, most short sale approvals do not permit assignments, and do not permit the (pre-shortsale) transfer of title from the mortgagor to a third party.
Most, but possibly not all. The more sophisticated the mortgagee, the more stringent are the terms of approval. It's best to fully prequalify the deal and learn ss criteria before you do something that would invalidate it, waste your efforts, and leave the Seller holding the bag.[ Edited by TheShortSalePro on Date 03/30/2004 ]
Thank you. I have the deed but did not record it. Seller knows from first phone conversation that I am not a magician and since there are 2 days tleft to do this, chances are less than slim.
I'm in my first short sale. got the loan discounted from $89,900 to $73,600, but I only have 10 days to close. AFTER the short sale was approved, I got a warranty deed to trustee and a land trust agreement. Neither is completely filled out yet, and the warrany deed isn't recorded, of course. Sale date is the 7th, I have till the 5th. The woman will be moved out by then.
If the SS goes south, go ahead and record the deed before the sale. If at the sale the price is bid up high enough to pay off the lien holders, you will get the rest. You might have to fight for it, but you should get it.
Nothing happens to you, except that you lose the house. Make sure if that happens that you don't have any money invested in the deal.
There are 2 parts: the House Loan & the Warranty Deed (or Deed of Trust). The deed is separate from the loan. And the Deed of Trust is only the Security Document for the Loan.
So, House gets sold and the person who signed the Loan has a foreclosure on their credit report (and may still owe the bank some more money, too). You lose the house and hopefully don't have any money invested.
Make sure you tell the seller that it is possible that the foreclosure still might happen. Have them sign a disclosure statement. You don't need to get sued for misrepresenting your actions.
Hope this helps.
The act of Recording a Deed, then seeking a short sale is akin to accidently shooting yourself in the foot... it might invalidate/disqualify a candidate from short sale consideration.
To execute a successful short sale, you must be forward thinking and anticipate obstacles. Generally, most short sale approvals do not permit assignments, and do not permit the (pre-shortsale) transfer of title from the mortgagor to a third party.
Most, but possibly not all. The more sophisticated the mortgagee, the more stringent are the terms of approval. It's best to fully prequalify the deal and learn ss criteria before you do something that would invalidate it, waste your efforts, and leave the Seller holding the bag.[ Edited by TheShortSalePro on Date 03/30/2004 ]
Great advice,
Thank you. I have the deed but did not record it. Seller knows from first phone conversation that I am not a magician and since there are 2 days tleft to do this, chances are less than slim.
I'm in my first short sale. got the loan discounted from $89,900 to $73,600, but I only have 10 days to close. AFTER the short sale was approved, I got a warranty deed to trustee and a land trust agreement. Neither is completely filled out yet, and the warrany deed isn't recorded, of course. Sale date is the 7th, I have till the 5th. The woman will be moved out by then.
If the SS goes south, go ahead and record the deed before the sale. If at the sale the price is bid up high enough to pay off the lien holders, you will get the rest. You might have to fight for it, but you should get it.
Brenda
I hadn't thought about that!
I do know that they couldn't come after me, as I didn't sign the loan in any way.
Lydia