AboutDick Dennis Expertise With more than 37 years as a real estate broker, I can solve most any problem presented. If I can`t, I do my research. Problems with mortgages, trust deeds, foreclosures, odd ways of conveying titles. Most any good Realtor can answer questions satisfactorily, but I answer questions that most cannot. Also, ask about my hard-copy newsletter.
Experience Problem solving since 1980
Organizations National Association of Realtors
Publications Publishes The Landed Gentry, guest writer in Who's Who in Creative Real Estate, First Tuesday, Financial Freedom and many newspapers
Expert: Dick Dennis Date: 7/21/2008 Subject: short sale
Question Hi Mr Dennis...
I have a home in Naples Florida....I bought for 213k in 2004, and tapped equity in 2006 at 75% of the "value" in 2006...so my bal. is approx 325k now. The values and closed sales are recorded from 200k even-250k in the last 3 months...lower than my original sale price. I am needing to move...I have my home listed and also am working with a "middle" investor who is going to bid 20% less than the going value...so about 160k....the investor will submit the offer after I sign the option contract, and I belive wants me to sign my deed over. I am a mortgage broker, over 12 years now...I asked a million questions and I gather the investor is ultimately going to do a
"dry" close ....another words...the realtor gets a buyer now for 200k and draws a contract between the investor(as a trust)and new buyer, simultaneously the investor and I already have a contract on my home....for 160k....so 2 things I question here....one the investor wants me to sign the deed over and not record it...so why? I know real estate and a signed deed is a deed, recorded or not...I am not ok with that?? and the investor is essentially doing a dry closing...on her part..using the end buyer's money to fund the 1st contract to my bank....when in fact the end buyer is not buying from my bank....as a mortgage broker...Lenders want to see seasoning on title, for say 6 months at least...how is the end buyer going to get a mortgage with no seasoning? Hoping this makes sense....Thanks CK
Answer You are not too clear, Christina, but I will try to answer the best I can based on the "information" I can decipher. To answer your first question, I am assuming the "buyer" wants to do an option. If that be the case, it is all right to sign the deed, BUT DO NOT GIVE IT TO THE BUYER! A signed deed is NOT a valid deed until it is recorded in the county records. You set up a real estate attorney to protect your interests, and let that attorney hold the signed deed. When the buyer has lived up to the terms, then the buyer may receive that deed and you can go on about your life. I do not recommend you signing any option to anyone without them giving you consideration and THEIR SIGNATURE, too. By the way, make sure they share the cost of the attorney, too.
The second question, the end buyer may have a "hard money" lender who usually uses the property as sole security. I am guessing that the investor (the person in the middle) will shave off his profit in conveying the property to the end buyer (if I understand what is going on). The title of this letter is "short sale" but I do not see any indication of a short sale.
I hope I understand what is going on based on what you have written. I wish you well
