A few questions before attempting my 1st deal - Posted by Jim LaVerdi

Real Estate Investing
#1

Posted by Glenn-OH on May 22, 2000 at 07:58:01:

Jim
If you use the PACTrust, it is simple.

  1. Current owner changes insurance from homeowners to landlord insurance.
  2. I would use the PACTrust because of stronger protections.
  3. No, sign the agreement, and start the paperwork. Make sure the mortgage holder knows the amount in arrears is coming within x days,and make sure that they will not accelerate before the closing. Just make sure owner is out before closing, to simplify matters.
    Glenn
#2

A few questions before attempting my 1st deal - Posted by Jim LaVerdi

Posted by Jim LaVerdi on May 22, 2000 at 01:25:56:

I have a house that owner contacted me about buying. She is behind on payments and is practically begging me to save her credit! I need a few clouds cleared before I feel completely comfortable. I will take subject to, and the following are my concerns.

  1. Insurance on the property. How do I buy it and… (How do you hide this from the lender?)

  2. Should I avoid the Land Trust because of the pending foreclosure?

  3. Should I have the seller out of the house before signing the sales agreement? (She needs to move but not ready for maybe 3 weeks)

Thanks for the help!

Jim LaVerdi

#3

Re: A few questions before attempting my 1st deal - Posted by Ben (FL)

Posted by Ben (FL) on May 22, 2000 at 14:08:44:

To add to Glenn’s excellent suggestions:

I don’t know anything about PAC Trusts, but if the current owner did change the poilcy into a landlord’s policy, she could also add your Land Trusts Trustee’s name and beneficiary as additional insured’s.