Recording The Deed BEFORE Closing
I have the deed to a property I am short selling, but have not recorded it yet. I have heard that when the bank runs a title search, if my name (or a name other than the current mortgagee) appears on the title that this can throw up red flags for the bank and mess up the whole deal. True or false?
I understand that one way to avoid this issue is to deed the property into a land trust, making yourself the beneficiary and then recording the land trust. That way the bank only sees the land trust when they do a search. Naming the trust with the name of the seller makes any questions even more unlikely. True or false?
Also, what rights do I have once I have the deed and a signed p&s? If the seller has moved out and left animals behind - can I call the humane society? And if a member of the seller's family continues to return to the property even though they have no legal claims on this property, can I serve an eviction notice or threaten to call the cops?
Thank you!
Okay, scratch the first question - found the answer and it's "true" - recording the deed can mess things up big time.
Still wondering about using a land trust and my rights.
Also, what if the seller suddenly starts getting cold feet or a better offer? If they sell to someone else and that person records the deed, doesn't that essentially negate everything that I've done, making my unrecorded deed null and void?
Thanks!