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During a short sale, does the title get deeded over to the seller before the lender approves the sale?

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Question by Tino: During a short sale, does the title get deeded over to the seller before the lender approves the sale?
I am trying to short-sale my property, and I got in contact with a company that specializes in buying short-sale properties. They are asking me to deed the title over to their company while they negotiate with my lender. I don’t feel comfortable signing away the title before the sale is approved, so I’m not going to do it, but I was just curious if this is normal procedure for a short sale.
I read the warranty deed, and it looks like they are wanting me to deed the title into a trust, in which I would be the beneficiary. Does anyone know exactly what this means?

Best answer:

Answer by kemperk
that is a con job approach. I was asked to do the same thing
years ago.

NO WAY.

try offering PART of your home for sale as an investment!

What do you think? Answer below!

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  • realtor.sailor

    Don’t do it! If you are successful with a short sale, you will deed the property to the new owner, after your mortgagee (lender) has approved the sale.

    realtor.sailor

  • Glenn S

    Don’t do it…that’s a scam. Go through a good realtor in your area that has done several successful short-sales. Keep in contact with your lender and tell them you have your property listed to sell, but you have to do a short-sale.

  • wizjp

    NEVER sign the deed over untill you have releases in hand for loans in question, and a deed ready to go to the buyer.

  • svt15

    NO WAY!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! do not do anything until the bank approves. which it could take some time.
    Be patience.

  • bud68

    Sounds like a scam – don’t do it. You should work any short sale directly with your lender, not some third-party company.

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