Tell Me You Didn’t Sign Over a Deed!

Real Estate Broker/Owner with United Associated Brokers

I don't know why these scams like the one that Pamela writes about are still prevalent......I can't believe this....makes me so mad! If you hear of any stories, please post a group I created: Fraud, scams and Ponzi schemes REPORT THEM HERE!  If you would like to leave a comment please go over to Pamela's original post as I will be disabling comments on this post.

Continuing Short Sale Saga – Tell Me You Didn’t Sign Over a Deed!

In my last blog post, Your Real Estate Agent Would Know if a Third-Party Bought Your Home, I wrote about my short sale seller who has suddenly decided to “cancel” his short sale. I discuss the different ways a home can be sold to a third-party. It is done through a transfer of title, in escrow by a standard or short sale, or title can be transferred by trustee deed.
Tell me you didn't sign over a deed!
A third-party cannot swoop in and buy a homeowner’s home without knowledge of the homeowner. When there is a mortgage, there is a lien on the property. In order for title to be transferred to a third-party the lien would have to be satisfied. In other words, the amount owed would have to be paid in full.

Title companies do not transfer title without satisfying all liens on a property.

A short sale occurs when the lender accepts a lesser amount than what is owed on the mortgage. For many underwater homeowners who do not have the money to pay the deficiency, a short sale is a way for the homeowner, who is having difficulty making their mortgage payments, to get out from an overbearing mortgage.

A short sale approval letter is the lender’s agreement to accept less and allow the sale, and title transfer to occur. After the escrow company receives the lender’s demand of short payoff, the homeowner would receive a deed from the escrow company. The homeowner would sign this deed in the presence of a notary and return the properly signed deed to the escrow company. The deed would be recorded with the county and title to the property is now conveyed to the new owner.

One scenario that popped in my mind is maybe my short sale seller signed over a deed to his property to a third-party. Maybe this third-party claimed they could “stay in their home” if he signed over a deed. This is a recurring scam. It’s amazing that I’ve come across homeowners who have done this very thing. Unknown to them at the time the trouble this causes later is practically insurmountable. Scamsters take advantage of homeowners who are vulnerable and do not know.

Tell me you didn’t sign over a deed!

Signing over a deed to a third-party outside of escrow does not relieve the borrower of the mortgage debt. This kind of action is considered fraudulent conveyance and clouds title to the property.

Tell me you didn’t sign anything!


Pamela Seley, REALTOR®
Short Sale Resource | CA DRE lic # 01824145 | Dir 951.491.4063 | Email

Serving Southwest Riverside County California| Temecula, Murrieta, Menifee, Winchester, Lake Elsinore, Canyon Lake, Corona, Wildomar



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All information deemed reliable, but not guaranteed. Copyright © 2009-2011 by Pamela Seley, REALTOR®

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Aida Pinto (562) 884-6196
Los Angeles County
Real Estate Broker

The Real Estate Maven :


Short Sale, Probate and standard real estate expert.


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