Are These Documents Needed For A Short Sale
I am a homeowner facing foreclosure and have found an investor that is interested in buying my property via a short sale.
The investor wants me to complete the following documents: quit claim deed, power of attorney and land trust. No of these documents are required by IndyMac to consider a short sale. He stated that the lender would not talk to him about the property without having these documents. Is this true?
Pretty much. I have tried to do a couple of short sales on property and the lender wanted to make sure that I had the homeowners permission to discuss there situation with them before they would even talk to me about it.
[addsig]
FALSE!
all that the mortgagee requires is a simple letter of authorization giving them permission to speak with the named third party.
A person would be foolish to sign those documents. A. The power of attorney giving the buyer to do everything in your name......Stealing comes to mind.
B. Signing a quit claim deed gives your right to ownership of the property away and as soon as it is recorded there is no need for closing. Putting the property in land trust puts the property under control of the buyer. All these things are being done across the country and being a hugh investigation. Those are called equity skimming and quite possibly PREDATORY LENDING PRACTICES. To talk with lender you just need signed authorization.
If the homeowner does a short sale with you and the bank takes it their mortgage is paid off. The bank does not then foreclose. The sellers may get a 1099 (int) or even a 1099 (oid) for any amount that can be considered income by the IRS and they are always looking to tax people. By and large the deal is between you and the bank after your purchase other than moving there is nothing the homeowners need to do. Your margins are thin also. You carry a payment two or three months and you are left holding you hand out for a deal yourself. In my opinion.
Not really a prime candidate for a preforeclosure short sale, but I would concentrate on the scope of the needed deck repairs... perhaps suggesting to the second mortgagee that anyone who ventured upon it were endangering their lives... that if you were the Broker selling it as an REO, you would require all retail buyers to sign a waiver of liability before stepping upon it.....