getting the deed from homeowners during short sale?

Foreclosures, Short Sales, Tax Foreclosures
1

any of you short sale investors getting the deeds from homeowners? some books i’ve read say to get the deeds, however, my partner doens’t.

i’m curious for those of you who get the deed and how you overcome the risk invovled (ie/ the house burning down while you own the property etc.)

thanks,
ryan

2

This is a question i have as well how do you go about getting the deed in any real estate deal ?

With sellers and homes owners so worried every one is out to scam and take them

When most of them are going to get kicked out of there homes any way

3

You don’t need to have the deed in your hands to do a short sale. However, I know it is a safety net for the investor who does not want the homeowner to sell the home to another or list with an agent while trying to buy and negotiate a short on the home. Truly, the best thing for a homeowner to do is list their property. That way it is marketed to a large number of potential buyers. Banks want to see this rather than an individual investor making an offer. Unless it is in a really scary area and the bank knows that.

Most title companies do not do Land Trusts either. The thing you need to remember is that when the seller signs over the deed, they are still responsible for the home mortgage, insurance, taxes, etc. The homeowner is taking the risk that the investor is a good guy and really going to help them get out of their situation.

4

i was told by an attorney that the title insurance is void once the deed transfers to someone else…hence why i’m trying to dig deeper into what happens when an investor gets the deed.

5

Makes sense to me what the attorney says. If you think about it, once an investor has possession of the deed, they can muddy up the title with and the investor is not the one the title company sold the insurance policy too but rather the person who signed at the table.

6

Well in a sub2 you get the deed and all the loan stuff stays in the sellers name

So i would think this would all so be the insurance of any kind as most have a mortgage where this is all one payment

As long as it is being made then i guess it would not be any problem

And any one trying to put the deed up as security on the property would find and see the mortgage

If there is not any or enough equity in the place they would not be able to use it for this

And if this is a short sale the person is all ready in a bad way in the sale as they are trying to get out of there all ready trouble