Have you used a Performance Deed

[Robert Clifford]

I was approached by a wholesaler who wants to buy one of my Airbnb properties.  I've bought with seller financing, but haven't been on this side of the transaction.  The seller is going to give me a note above the amount I still owe on the mortgage.  He said we would utilize a payment service to ensure payments are made, and also a "performance deed", so that if they stop paying I could reclaim the property without going through a year-long foreclosure process.  The property is in South Carolina, and I've talked to one attorney who said run, and I've reached out to a second to ask about this type of deed.  

If you have experience with this, please let me know or point me in a good direction.  I'm looking for a way to make it happen, without exposing myself to undue risk.  

Thanks

[Tom Gimer]

A performance deed -- essentially a substitute for a deed in lieu of foreclosure -- causes problems with title insurance on a subsequent sale because the deed was not executed after default and good faith negotiation with the lender (the typical DIL scenario). 

Pocket deeds such as this violate the borrower's right/equity of redemption and to have a commercially reasonable foreclosure sale. You improve the property considerably then miss a payment... boom... deed recorded and you've been robbed of your equity.