Posted on: 16th Jul, 2007 09:28 am
I am a real estate agent with a client in preforeclosure and was approached with an offer to purchase her home. The offer will be submitted to her lender for short sale consideration but the investor wants her to sign a quitclaim deed to insure that she doesn't entertain any other offers from anyone else while they are negotiating the short sale. Is this safe to do? Is there anything else I should be concerned about? If she doesn't do this, the investor will withdraw the offer to purchase and then she is definitely headed for foreclosure. What do you think? I want to counsel her appropriately
Arnell, by quit claiming the house ownership will get transferred in investor's name right now. He can very well deny having agreed to purchase the house.
What your client needs to do is to consult an attorney and tell him all the details. Attorney will tell if any contract can be made which will compel the investor to purchase the house after the short sale is negotiated with the lender.
Miller
What your client needs to do is to consult an attorney and tell him all the details. Attorney will tell if any contract can be made which will compel the investor to purchase the house after the short sale is negotiated with the lender.
Miller
your client will sign a quit claim deed and the house will become investor's property.
short sale will be for the property your client owns and if prior to short sale ownership is transferred then how short sale will be against her property. she will not have ownership after quit claim deed is signed. you need to get the details about the exact procedure the investor wants to follow.
you need to talk with an attorney to know if a clause can be added to the quit claim deed which will state that the investor has to pay off the loan within a fixed number of days or the deed will stand canceled / investor will be required to quit claim it back to your client.
short sale will be for the property your client owns and if prior to short sale ownership is transferred then how short sale will be against her property. she will not have ownership after quit claim deed is signed. you need to get the details about the exact procedure the investor wants to follow.
you need to talk with an attorney to know if a clause can be added to the quit claim deed which will state that the investor has to pay off the loan within a fixed number of days or the deed will stand canceled / investor will be required to quit claim it back to your client.
Hi Arnell,
Welcome to forums.
If your client has decided that the offer is worth considering and if you too feel the same, then I don't think your client should be worried about signing the quitclaim deed. But she needs to make sure that the negotiation will work out well. I think you can help her in this regard.
Thanks
Welcome to forums.
If your client has decided that the offer is worth considering and if you too feel the same, then I don't think your client should be worried about signing the quitclaim deed. But she needs to make sure that the negotiation will work out well. I think you can help her in this regard.
Thanks