Should I Take The House Subject To?
I am working on a short sale right now...however the seller is also wiling to deed me the property.
Should I go ahead and take title to the property, or will that screw up the short sale.
FYI the deal doesn't work unless the short sale is approved, there's no equity in the property
You may still be able to make the deal work despite no equity if you sell it on land contract or L/O it--assuming the SS doesnt work out.
If you take title, it will trigger the due on sale clause and stop the short sale in its tracks. If you want to short it, do NOT take title.
Hi vcrindc,
Go ahead and get the deed from the seller and have it notrized. Dont record it until after you learn the outcome of the
SS because it may disqualify it.
If you think that you can bring the note current and take it sub to, that is also a good exit stragtegy, depending on how much you have to invest in the property.
Best of Success!
BAMZ
Bringing it current is a money losing situation....I'd need to execute the short sale, there's no equity in this deal.
I guess I should go and have him deed the property to me, but then not record it.
Thanks,
So if the only way to buy this property is to short it, getting the deed and paperwork out of the way now is a good way to do it.
All investors have their own way. I generally wait until I get the SS approved until I have the seller meet me at a notory to have the deed signed. Even though I try and present sound packages with each SS, they dont always get approved for one reason or another. I try not to give the sellers false hope.
However, if you feel that your seller may skip the area or be hard to get a hold of, getting the deed in advance (without recording it) is a good idea.
BAMZ