Ask Paul Wells

Paul,

I've been talking to some homeowners with very little equity, but with multiple liens. To do the short sale I have told them that they need to deed me the property. Many times I am asked why they should do this. I tell them that it is easier to negotiate with the bank if I am on the deed and if sellers 'vaporize' I am not left hanging. Are there other reasons I can give for why I need the deed? These two reasons don't seem to make them feel at ease.

Hal

Hal,

Ask them why they are reluctant…They have no equity, their credit is about to get trashed with a foreclosure on it, and if you can come to an agreement with the bank then they may be able to get a little money…

In my opinion people that don’t sign deeds are not that motivated….As well if you show any reluctance at all then they will get a little spooked.

You can also offer some protection by signing a contract with them that says should you not be able to come to an agreement within a certain amount of time you must return the deed. As well if they won’t sign a deed get them to sign a contract and then record it.

Paul