Posted by Ed Copp (OH) on February 17, 2001 at 14:36:06:
you’re a bit short, perhaps tapped out; or broke. O.K. there is another way, but let me say that an investor without money, or without sufficient money is sometimes at a disadvantage.
One suggestion would be to get an option from the seller, for the amount owed. Pay him a small amount for the option. Record a memorandum of option, and make the option for a time period considerable longer than the sale that is scheduled. Since the owner may come into some money and bring the payments current, stopping the sale.
You will now have an option that you can market. Figure in the costs that will be due if you sell the option, such as back payments, title search; and tossing out the squatters. Incidentally it is not beyoud the scope of immagination for the occupants (namely the ex-wifes’ father to come up with some money to bring the mortgage payments up to date, in exchange for the deed; as a matter of fact this may be his plan) to attempt to buy this deal out from under you.
Then you can look for a buyer. What you will be selling is your option, and the new buyer of the option, will actually buy the property in your place.
I have a guy that needs to sell his house. He is 3 months in arrears and trustee’s sale has been scheduled for 5/8/01
The existing mortgage is sweet, and the seller wants $0! Just needs help out of this foreclosure situation.
Problem.
His soon to be ex wife and her father are living in the house. They pay him $0 for rent, and they have no written rent or lease agreements! (How he allows this is beyond me!) but he filed for divorce a few monts back and for whatever reason left her stay in the house.
The “ex” has a disclaimer or (Quit Claim Deed) filed on public record which clearly states that she has relinqueshed her rights to anything that concerns the property.
He wants to sign up the deal now! He doesn’t know what he can do to get her and her father out and is hoping that by my buying the house will fix that problem as well as the foreclosure problem that he has.
I would love to get this property, because of the great terms of the existing note and the saleability of the property in a nice desireable area.
How would you handle this ex wife and father situation?
Posted by Ed Copp (OH) on February 17, 2001 at 13:42:11:
Buy the house “subject to” the existing Mortgage. Get the deed from the seller, and bring the payments current. Be sure the title is not further incumbered.
You might get the current occupants out by intimidation, that is to indicate that they are trespassing (which they are) and ordering them to leave subject to penalties under the full extent of the law, etc. etc…
Most likely you will have to evict them in the court system. This should begin immidiately if not sooner. They are in the habit of paying zero ($0) for rent and will most likely attempt to do this as long as possible. Do NOT take any money from them, as this might be considered some sort of contract by a judge.
But, you had mentioned to take the mortgage over subject to and make up the back payments!
That is certainly what I want to do, but not with my money! I need to get the house and then get the money from a down payment from my buyer who I will owner finance the place to with a down payment. That’s how I will make up the back payments!