Quitclaim Deed, Subject To & Putting a Wholesale Deal on the MLS

[Suzette Bickers]

Working to close my first deal. It's a nice property that can be sold to a retail buyer. Owner is 3 months past due, on the verge of foreclosure (lending company is holding off foreclosure because of our agreement to buy the property). I have spend a month trying to get this property on the MLS to market to retail buyers. None of the local flat fee realtors/brokers will do the agreement with me because we are not the owners on the deed. They state that because we only have equitable interest, we cannot sign the listing agreement. They state their local board rules. Whether they are just not understanding the exact meaning of the rules, or whether we really can't be the ones that sign, I am not sure. But at this point I am running out of valuable time to mess with trying to find someone and then wait for a retail buyer to be interested and buy. SO, I was thinking of paying the back payments and curing the default and doing a quitclaim deed so I become the owner and can this house on the MLS. I am working closely with a title company, and the title is clear from what I can tell.

My question is really about how to PRESENT this to the owner.  Her back payments get paid and she is no longer delinquent, however I am thinking she would be wanting right away the payout she would get after the payoff of the mortgage.  How do I sell this idea to her?

[Guy Gimenez]

@Suzette Bickers

Never waste time when a property is on the verge of foreclosure.  If something isn't working, change course ASAP. 

We have the same rules for our MLS although they're often violated without consequence. However, if you're selling retail, I'm trying to understand why you wouldn't have already taken the property sub-to and recorded the lien.

If it's an issue of the seller being afraid of not getting whatever equity you promised, she could consider taking a second lien for that amount so she will get it when the end buyer closes. 

There are other options available too, but since the seller is nearing foreclosure, you should be able to "sell" her this concept quite easily, especially if she understands she gets nothing if the bank forecloses.