You’ve seen it on the evening news:
“Terrible Investor dupes homeowner out of everything by tricking them into signing away their title!”
Now, we know you wouldn’t do this on purpose, but many investors are doing it all over the country, every day. Most of them don’t even realize they’re doing it, they’ve just been taught by someone who doesn’t care (or know themselves!).
Are you using a Land Trust? Are you recording a deed? Guess what; If you answer yes, you are most likely falling into that very dangerous trap! You need to take action and learn the proper methods immediately!
Using a Land Trust can be fine, provided you use it correctly, which most people don’t. You should wait until you’re ready to close before assigning Beneficial Interest, and if you think the homeowner won’t be available, you should have specific wording in your agreement that states even though you are doing the assignment of Beneficial Interest, it SHALL NOT be executed until the time that you specify. That assignment form should also be held in an escrow account or at your closers office.
If you record any type of deed, or assign beneficial interest, you’ve just crossed a line that can get you into LOADS of trouble. You have taken away any possibilty of that homeowner being able to pursue any other means to solve their foreclosure problem.
If their house then goes to foreclosure, and they decide that you had anything to do with it, or that you didn’t do enough to help them during the situation, all they need to do is go share your transaction with an attorney and guess what; You’d better be ready to lose some sleep. That attorney is going to do his/her best to chew you up. Best case, you’ll spend alot of money on your own attorney and lose alot of sleep. Not to mention get plenty of new grey hair.
If you sign up your deals correctly, you shouldn’t have anything to worry about. Whenever someone says “get the deed”, RUN. Run the other way as fast as you can, because they don’t know what they’re talking about.
Our students know exactly how to sign up deals. As a matter of fact, we teach them MANY different ways to sign up deals, so everyone will have a method that works.
If you want to know what our students know, and how to have true success in the short sale arena, Learn about buying foreclosed homes.
Please don’t be the investor on your local nightly news! Learn the RIGHT way.
