One does not just deed a property to somebody. The person must, at least by CA law, accept the deed. If the person does not accept the deed, you have not deeded it to that person and are still the owner, thus responsible for any obligations secured by the property.
Real estate investing is for real. There are actions. There are laws covering most of the actions and the situations. There are real consequences that occur to people because of the choices and actions that they take. That is part of why I recommend to beginners that they plan to study up on real estate for six to eighteen months before they start making offers on properties. If you don’t know what you are doing, it is very easy to get into trouble.
What happens if you have the signed and recorded deed and you are trying to work a short sale but the bank won’t do it? I know the bank proceeds with the foreclosure but what happens to the person who is on record as the deed holder?
Here’s when I will record the deed in a short sale situation.
I think the owner may convey to other investors, or there is potential for the owners situation to cloud the title.
I feel that the bank needs to realize that they have two choices, deal with me the new owner or forclose the property out. It might also help the bank know that I have control so that the sellers won’t mess up the transfer.
The deed is transfered to me in my corporation or a land trust so my name would not be in the forclosure proceedings. Transfering in this matter doesn’t give me much of a downside, but if there is something I’m missing please comment, as I don’t know everything yet.
I agree with Ron. You’re not supposed to record the deed until you have a deal with the bank.
I understand that you can deed the house back to the original owner without their consent (according to my NJ attorney). Did you pay them any money for the deed?
If I can ask here, just to be sure I am learning correctly, if I had a deal with a signed deed but not recorded, I am okay then right? I don’t have one, just asking.
Alright? Well, I suppose you could say that at least you don’t have any legal liability for the property. However, that could depend upon any contract you have with the property owner and any lienholders on the property.
I want to do things right. If I had made a deal I would stick with it, so, in this case if I was doing it right I might be taking the deed with the contingency of the banks acceptance. However, if I took the deed on this same deal and recorded it first, I guess I could still exit the deal but it would get complicated. Maybe I just deed it back to the seller.