Is there an response to this concern on a subject to purchase

[Yocheved Beer]

Hi all,

I made an offer on a house subject to and it got rejected because the seller is nervous that if i dont pay then they will get foreclosed on.

Is there something called a performance deed that would deed the property back to the seller if I dont make the payments, or it that just made up?

Thanks

[Tom Gimer]

Performance deed as in a pocket quitclaim deed back to the seller, to be held in escrow until default.

I've mentioned before how these cause title problems, potential litigation, etc. but doing so would certainly work to put the seller back in title. Most buyers/sellers agree that in the event of a buyer default the buyer will reconvey via DIL (if the seller has a lien to foreclose) or otherwise. Either one of these options is coming with some costs... and if the buyer has defaulted guess who is paying those.

I think as a seller I'd rather have the deed than be forced to chase down the defaulting buyer for ink.