I have a property that I bought sub2. I have not recorded the deed with my name on it yet. I have renters in the property now who are tring to buy it. The renters are working with a lender who has recommended doing a refinance on the property to get the loan quicker with less hassle. However, this entails deeding the property over to the renters first, and they’ll do a refinance the next day. Needless to say, I’m not comfortable with deeding the property to them before I get cashed out because the loan could fall through and they’ll have a deed in their name. I’m wondering if I should consider this and if so, should I get a Warranty Deed signed by the renters back to me and hold on to it so that if their financing falls through I can deed the property back to myself ?
They should be able to get a regular purchase money mortgage unless there is a particular problem. Ask why the refinance route is best for the lender. If that is the only way to go then do it. I like your deed idea too if you have to go the refinance way.
Good luck
Thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737
512-301-9171 home
512-587-6177 mobile