For future reference I was wondering. What happens if you are doing a short-sale, file the deed under your name or trust, and the short-sale is not approved or can't close for some reason. How do you put the deed back to the homeowner's?
Once a deed is filed, you don't "unfile". Instead, you execute a new deed that transfers title back to the homeowner. You will be in the chain of title for the property, so you will still want to purchase title insurance to protect you
I used a trust so that I wouldn't be in the chain of title. The deed shows it going to a trust. The trust has myself as the trustee and the homeowner as the beneficiary. What would I do in this circumstance? Would would I need to fill out or sign to get it out of the trust and back to just the homeowner?
Trustee of the Trust back to the homeowner.
You may be able to get exact verbiage required from your county where you recorded the deed purchasing the property.
John (LV)
If you don't want to execute a new deed to transfer title back to the homeowner, do a substitution of trustee instead. Make the homeowner the new trustee. The homeowner remains the beneficiary and the trust stays intact.
I don't understand the value of a trust here. Maybe you can explain how a trust facilitates a short sale, or maybe why you felt a trust was needed in the first place.