Deed And Protection
I've heard mixed opinions on getting the deed on foreclosures to protect yourself. There is a house I've negotiated the 2nd on and should finalize the first by the end of the week. I've already put the house up for sale in August.
One investor called me about this house inquiring on purchasing it. They told me they found out about this house going into foreclosure literall a day after I signed the contract to tie it up.
Well--I didn't record the contract or a "Letter of Interest" (I think that is what it is called). My thoughts were---somebody could steal this deal away if they were aggressive so should I get the deed in the future on properties? And then deed it back to the seller if negotiations can't be made with their lenders?
Some have said getting the deed could be dangerous if their are liens, etc against the property. What is the best way to protect the property agains other investors?
Thanks a bunch--Jim
In my opinion, the best protection is to have an open and honest relationship with the Homeowner/Seller.
For $1 the Homeowner can sell you an exclusive option to purchase, and/or a right of first refusal. This doesn't compromise ownership, but demonstrates the intent of the parties.
Thanks Shortsalepro--
So are you saying that my current deals by just getting a contract signed is protection enough? Keep in mind I haven't recorded anything at the courthouse.
I agree with you---honesty is the best policy. The shorts I've been involved with I've kept the sellers informed the whole step of the way and it seems they really appreciate it.
Thanks again--Jim