Deed In Escrow?
I was wondering what peoples' thoughts are about having a seller agree to deposit their deed in escrow instead of providing the deed directly to you, in the case of buying subject to the lendering accepting a short sale.
I once heard that title/escrow companies can provide that service, but I've never actually spoken to a buyer who's used this technique. Have you?
I can see how it might provide a somewhat hesitant seller the comfort to allow you to proceed (easier than handing the deed right over). On the other hand, it's still not like having the deed in possession, and, could pose difficulty, if you decided you have to record the deed for protection.
Your thoughts?
Martin
Kind of defeats the purpose of buying subject to.
What is the purpose of putting the deed in escrow in a situation like this? You want the deed in hand so that you can record it.
Now when buying in a LO or Land Contract you will definitely want an executed deed in escrow but in sub to you want it in your hand.
Hi Martin,
Alot of investors buy on contract for deed. This is buying where the seller keeps legal title and you get equitable title.
They do this for those sellers who are concerned about signing over their property, and who want the security of making sure the payments are made as the loan is still in their name.
As I said, alot of investors do it, I do not however. I want the deed or nothing at all.
William Tingle
WilliamGA