Has this ever happened to you? You have found the perfect house you want to purchase. And you are even able to find the owners. They had abandoned the home, but after talking with them and making them feel comfortable you were finally able to get them to sign an Authorization to Release Information. And yes, it is signed and notarized! Unfortunately some time has passed and you still would like to get into the house, but the locks have been changed and you cannot access anything. You are even trying to talk with the Loss Mitigater….and still are unable to gain access to the home…and the worst part about this situation is you have yet to make an offer.

What? How could this be?

Your first mistake is that you do not have the deed to the house. If you find yourself in this situation, (which a few people have done this before) do not fear there is a solution. Your first inclination might be to do a short-sale on the home, and only pay what is owed (or even to try to go for less-which you cannot do).

A short-sale is not the answer to everything.

You would really be better off finding out how far behind he is on the loan and come up with a smaller amount of money to make the loan current. Now, after you get the deed, have a title search done while simultaneously having the title company... or somebody... contact the owner. In fact, I'll bet you the seller has got a piece of paper that he'll give you that he got from the bank showing how much it would take to bring it current. If you can obtain that information, you’ll be one step closer!

You may be thinking to yourself…okay, I’ve now got the deed. The house seems okay…it doesn’t really need a lot of work. Is there really a rush? Maybe I should just wait until I get it sold or get a tenant buyer who will bring the money I need to get it current.

Think about it. You don’t have anything to lose until you write that check to make it current. And realistically, you won’t be doing that until you get the money out of the marketplace. And if you find a cash buyer for it... somebody who is able to obtain a loan and cash you out... that underlying debt is going to be paid off anyway. Realistically, there is not a thing the bank can do except take it. Keep the control with yourself.