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J. Warren
J. Warren, Lawyer
Category: Real Estate Law
Satisfied Customers: 2212
Experience:  Experience in residential real estate and commercial leases.
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My question is regarding a grant deed. my ex and I are

Customer Question

my question is regarding a grant deed.
my ex and I are behind on the mortgage and have received foreclosure paperwork. the bank has turned down 2 short sale requests. we have an investor who is willing to pay our back payments and then we "grant deed" him onto the property. he will then flip it and will make whatever profit comes about from there.
my question is, if he becomes bankrupt or has any kind of financial issues how does this come back on us since we are still on the property with him?
Submitted: 7 months ago.
Category: Real Estate Law
Expert:  J. Warren replied 7 months ago.
Hello and welcome to JustAnswer. Please note:This is general information for educational purposes only and is not legal advice. No specific course of action is proposed herein, and no attorney-client relationship or privilege is formed by speaking to an expert on this site. By continuing, you confirm that you understand and agree to these terms.Question "if he becomes bankrupt or has any kind of financial issues how does this come back on us since we are still on the property with him?"Yes this type of situation can have consequences. Even with a grant deed, the owner remains obligated under the terms of the mortgage and the underlying promissory note in the event the investor does not pay off the loan from the sale. There is high risk of fraud in foreclosure cases in which an investor proposes to assist with bailing the homeowner out. What can happen is you sign over the grant deed the investor flips the property but doesn't pay off the mortgage leaving the original homeowner still on the hook. How does this investor plan on flipping for a profit when the proceeds of the sale will have to be enough to pay off the back payments plus the remaining balance on the loan? Something seems fishy. I am not saying this is the case in your situation, but given the high risk of fraud, all the documents and the transaction should be reviewed by a local attorney before signing and going through with the transaction. If the investor is refusing to put this proposal on paper and in writing, you should report this as a potential fraud matter.All my best and encouragement. Thank you for allowing me to help you with your questions. I have done my best to provide information which fully addresses your question. If you have any follow up questions, please ask! Please press a positive rating above this message box in the ratings section so I will be paid for my time assisting you on this matter. Pressing a positive rating will not cost any additional money - it is simply the trigger used by Just Answer to pay me for my time (pressing the middle star or the fourth or fifth star on the right are all positive rating buttons).
Expert:  J. Warren replied 7 months ago.
Can I answer any additional follow up questions for you or clarify anything I have written above? If not, can you please press a positive rating above this message box in the ratings section so I will be paid for my time assisting you on this matter? Pressing a positive rating will not cost any additional money - it is simply the trigger used by Just Answer to pay me for my time (pressing the middle star or the fourth or fifth star on the right are all positive rating buttons).

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