Why Getting the Deed is Important

Many homeowners are reluctant to deed me the property on their foreclosed properties and I can see why they might be reluctant. A property deed shows ownership of the real property. So why would anybody deed their property to a total stranger?

Why the homeowners are hesitant:

·They think you are going to steal their house
·This is a fairly new concept and they are not familiar with it
·They have heard horror stories of people being taken advantage by investors
·They are in denial and think they will make up their missed payments
·Their lawyer/ friend thinks it is a bad idea
·Other investors said they can do the same thing without the deed

Why the homeowner should not be hesitant:

·I put in writing what I intent to do with the deed and recommend their lawyer look it over
·In my contract I state that if a “short sale” is not accepted by the bank I will deed to the
property back to the homeowner
·The homeowner needs to be more aggressive than other people in foreclosure if they want to
save their credit
·If the property is foreclosed on, the property is deeded to the bank anyway, so why not try to
avoid the foreclosure process all together.
·The banks are more likely to seriously considered my offer if they know I hold the deed to the
property


When I explain to the homeowner the benefits of deeding me the property and recommend they have their lawyer look over the contract, they are a lot more likely to work with me. It is really all about educating the homeowners on the process and making them feel comfortable. Now please keep in mind that I only recommend that a homeowner deed me their property if they are several months behind on their payments and have no intent of making them up. Only motivated sellers will work with investors on such a new concept, but once they are informed of the benefits, it usually is their best option. I hope this helps both homeowners and investors understand the concept of “getting the deed” a little better. In my next blog I will talk about why the banks view the deed so highly in working with investors on short sales.


It’s a new day, new deal, new opportunity

Mike S. - Texo Properties (www.texonc.com)