Deed Grabbing, Can I Be Liable?
Hopefully this is the right forum!
I got a deed from seller after negociating Short Sale $$$ with lender. Have not recorded it yet. What happens if the property goes to Sheriff Sale while I am on the recorded deed? Will the bank pursue me or would the seller still be the only one responsible for the foreclosed loan?
[addsig]
I am missing something on this one. Is there another lender that is foreclosing? I assume that the sheriff's sale is associated with the loan on which you negotiated a short sale. If so, that loan will be satisfied by the short sale and there will not be a foreclosure. Perhaps you can explain.
Quote:
On 2004-11-11 22:14, edmeyer wrote:
I am missing something on this one. Is there another lender that is foreclosing? I assume that the sheriff's sale is associated with the loan on which you negotiated a short sale. If so, that loan will be satisfied by the short sale and there will not be a foreclosure. Perhaps you can explain.
Well, let me clear this up! I have an unrecorded deed from the seller as well as a Short Sale Payoff from their lender. I wanted to know that once I record the deed, will I be liable for anything if I cannot satisfy the foreclosed mortgage before the Sheriff Sale Date.
You would not be liable, the person on the loan will be liable. If you are not sure, you want this property, I would not suggest you to record the deed.
Rentalie, yes I do want the property, but my financing options are limited and do not want to pay cash due to the large $$$$ of repairs! I do not want to get caught up and be liable for anything if property goes to foreclosure sale, that all. Shoul I just record the deed and get it done with?
Recording the deed without first satisfying the foreclosing mortgagee's lien will do nothing
to stop the foreclosure process. The Sheriff's Sale
will result in the property being auctioned off to the highest bidder.
If the Sheriff's Sale occurs, you won't be liable for the mortgage... and you won't own the home.
Seems that you might have placed the cart before the horse on this one... without having your exit strategy clearly defined.
Depending upon the promises you made (to the former homeowner) and specifically what you promised contractually, in writing, they may decide that you bungled the deal which resulted in the loss of the home to Sheriff's sale and seek the advice of an attorney.
Thanks for the replies! SS Pro, I apologize if I did not clarify my response. I can pay cash at any time befroe the Sheriff Sale to resolve the foreclosure issue. My problem is the $$$$ to do 50k + in rehab work quickly!
Although I have the (unrecorded) deed, I did not make any misleading statements or promises to the seller, who by the way had not made a payment in 3 years to the lender. The property was vacant, vandalized, and in need of major repairs, they just abandoned it altogether. I told them that I would take a look at the numbers and see if the deal would work for the both of us, that's it. I may or may not buy the property if the cost to repair continues to escalate.
Thanks.