Importance Of Getting The Deed?
Hi to all of you savvy short sale investors.
There is conflicting information everwhere (so whats new) about the importance of getting the deed.
This is a general topic so give it your best shot.
Why get the deed?
How to approach getting the deed?
Which deed to use?
Do I record it?
How do I use it to negotiate?
All answers large and small are greatly appreciated.
CsatPro
Customer satisfaction is my job and my paycheck.
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[ Edited by CsatPro on Date 06/14/2007 ]
[ Edited by CsatPro on Date 06/14/2007 ]
Really not that important in my opinion and if you are trying to do a short sale, as i think your post suggests, it may be fatal.
Thanks Jorge,
When you say fatal, hmmm, under what circumstances. I actually have a warrantee deed that is subject to debt (i do not accept the debt) but will give benificial interest but superior title only kicks in after debt is released/satisfied etc...
Covenant:
But it is expressly agreed that the Vendor’s Lien, as well as Superior Title in and to the above described premises, is retained against the above described property, premises and improvements until the above described Note and all interest thereon is fully paid according to the face, tenor, effect and reading thereof or when the above described note is satisfied, voided or otherwise nullified on the public record, when this Deed shall become absolute.
PS I am not a lawyer and no statement here should be construed as legal advice
CsatPro[ Edited by CsatPro on Date 06/14/2007 ]
I would avoid using legal "jargon" unless you know exactly what it means. If you are taking the deed then you ARE the legal AND beneficial owner of the property. The supposed "covenant" language that you are adding not only makes no sense but contradicts the very fact that the deed gives you ownership.
Getting the deed is fatal in that short sales are granted to assist a borrower get out of a nonperforming loan because they are financially unable to comply with the terms of the loan and because the property itself may not be worth what is owed by the borrower at the time of default. At the point that you are the legal owner of the property (you have the deed) then there is no short sale. At that point, your better option is to purchase the note at a discount via an assignment. Since you would already have the deed and the note purchased at a discount, you would have all you need.
ps - i am a lawyer but this is not intended as legal advice [ Edited by jorge121 on Date 07/03/2007 ]
jorge121,
How do you buy the note? If you are working with a bank for a short sale, will they just sell the note? I would think that they would want to see title transfer so that I dont buy the note and then sell the property giving the owner part of the profits (because I know banks make it clear that an owner/seller cant make any money off a shortsale). By them just selling the note, the current owner still holds title and to them this might make it seem that the owner will profit from this short sale.
It seems like this would be a great way to "assign" the deal because if you buy the note, lets say $100k, for $50k and have a buyer for the property at $80k then you can discount the payoff to $80k since you hold the note. This way you never have to take title and can still profit. Is this right? Will banks do a short sale and sell the note?