I am looking for help on a short sale. I have a homeowner that is ready to quit claim a deed over to me, and I have a back end buyer ready to purchase. The question is the home is going into foreclosure and I have gotten the approval for a $95k short sale with the lender. The backend buyer will pay $137k for the property that is worth $160k. What is the best practice to make the deal work and get paid at closing without breaking any laws. Do I do a quit claim or a purchase contract with the seller for $95k? I am trying to do this WITHOUT using my own credit, money etc. Please help???
It should be just a straight-forward sale if you have the deed. Your buyer brings $137k, title agent wires money to pay off the existing discounted mortgage of $95k, and you give the buyer the deed and walk away with the difference.
Thank you!!! I guess if it’s a L/P it is an assignment to the buyer correct?
you need a double closing.
I would not get the property quit claimed to you as this will break chain of title.
You need to take title in a landtrust and you or company act as trustee.
you then sell the property to end buyer as trustee with no chain of title issues… this isn’t just incase the end buyer gets a loan but also to keep the underwrtiers happy.
Land trust my happy ass.
You only need a land trust for asset protection.
If you have a cash buyer, just do the double close.
The only issue might be seasoning if your buyer needs a mortgage, but there are easy ways around that, without the expense of a land trust.
I agree with JDS. I don’t get the craze of Land Trusts in Short Sales lately…
ok don’t do a land trust, which by the way is not expensive at all. it will cost you zero if you do it yourself.
YOU WILL have seasoning issues when you run out of cash buyers and they need loans
YOU WILL have opened yourself up to potential liens against the property which will prevent you from selling.
YOU WILL be on public record, which you really don’t want to do, unless you want everyone to know your business.
The bottom line is for a few extra pages of paperwork I would much rather to the truat and keep myself protected so you can conclude your deals.
but it is your choice, be safe or take a risk ???
If all I ever do is short sale and double close, the liens are already cleared, or discounted with the short sale, when I do due diligence.
The county doesn’t record the deed in my name, because there’s no point if I only own it for ten minutes.
There are lenders who don’t care about seasoning issues, and if you can’t find one, I’ll owner finance it until the seasoning issue goes away. The deed still transfers straight to my buyer at the double close.
So why do a land trust for a property that I only own for ten minutes?
just for the reasons I posted before.
i hope you don’t get a lien on the property the day of your closing… ah but then if it was in a land trust it wouldn’t attach.
It’s all about choices. that’s what makes the world go round.
Ah but then if you’d done due diligence, you’d have found the case pending in the county court.
Better to pitch a strike than hope the outfielder catches a flyball.
it takes to minutes to record a lien.
if you are protected then it won’t matter, if your not protected then guess what… it matters !
better to be safe than sorry.