What If Bank Forecloses After You Take Deed Sub2?
Here is a scenario. You take a deed sub2 from an owner who is delinquent. For some reason you don't get the mortgage current and the bank forecloses. Even though you have the deed, does it goe back to the bank?
joefromphilly,
Yes.
John $Cash$ Locke
Now that is grounds for divorce. YOu never ever let that happen. Of course as John has said the property on foreclosure of the mortgage does go to whoever bid the highest at the sale and that is usualy the lender. Bless his poor soul.
You should never ever let that happen if you are short then bring in another investor and split the deal. Then get out and fast pedel the deal and get a buyer, or a renter or a Lease Option, or a Lease with no option. Whatever. But Never Let It Happen.
Lucius
If the bank has just filed foreclosure proceedings, call them and find out what needs to be done to reinstate it. You should have gotten a limited POA when you signed the subject to papers. That will allow you to negotiate with the bank to resolve the issue.
I agree with the others. Don't let this happen. Get another investor with cash to help if you have to. Good luck.