How To Buy Foreclosed Homes For Sale | During a short sale, does the title get deeded over to the seller before the lender approves the sale?

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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?

1 Comment »

  1. 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

    Comment by realtor.sailor — July 14, 2009 @ 2:42 pm

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