My friend holds the mortgage, but he and his ex are on the deed. I want to do a short sale…what do I need to do?
Yikes. A little more research. It’s a “quit claim” deed. There are a lot of good posts on the site so browse around.
:o Thanks!!!
A couple of things before you jump for the Quit Claim:
Is he on talking terms with his Ex wife.
If so you could just get both of them to sign the deed into a land trust, and go about your business as usual.
Or
Get her to quit claim it to him then he signs the deed over to you into a land trust.
the only challenge with a quit claim is, if she quit claims to him you need to record that deed, ( i take it the guy doesn’thave any money) when he records the deed he will be liable to pay taxes on half of the outstanding mortgage because his EX has quit claimed it.
Then you need to record YOUR warranty deed into the trust.
Now if the guy doesnt have any money you will need to pay the transfer tax for th equit claim but zero when you put it in to the trust.
SO
I would see if she is willing to sign along with him on a warranty deed to trustee and record it once with no taxes being paid.
if not get your check book out… but what if you pay the quit claim taxes and you don’t get the short sale… will you lose out ???
GQ
Thank you! I appreciate the posts ;D
Green queen
First off, I am not trying to be a smarta$$. I am just trying to understand. So please don’t take offense.
If so you could just get both of them to sign the deed into a land trust, and go about your business as usual.
Just curious why into a land trust & not just quitclaimed to ex hubby. What would be the benefit of dealing with the trustee & not the husband?
Get her to quit claim it to him then he signs the deed over to you into a land trust.
Another just curious, if you have it deeded to you by means of a trust how can you complete the shortsale? I was under the impression the transaction had to be at arms length & essesentially you/your business is the new owner. Also, once it is transfered to ex hubby wouldn’t it be business as usual then?
it’s ok i dont think you are a smarty pants.
It will be arms lenght transaction.
If you get th ex to quit claim that has to be recoreded. you will pay taxes on the 50% of the outstanding mortgage.
then you get your deed into a trust you need to record it again.
do see where it could get messy?
also it will assist in any chain of title issues is both sign into the trust.
He is the thing, it will help HER credit too !
The way I have been taught has trumped every time.
If there is any hassle with the lender yoiu can tell them you already have the deed and it’s in ecrow.
That will show the debtors commitment to get out and your commitment to purchase.
Hope that helps
GQ