Posted by Kristine-CA on May 25, 2007 at 23:02:50:
Hi Bob. Should have said no deficienty judgements with a trustee’s sale.
You are correct if one goes after the borrower with a judicial foreclosure.
My point wasn’t that we don’t have warranty deeds in CA, but rather that
the original poster is obviously unfamiliar with CA and has some
researching to do. Kristine
CA foreclosures (vs less regulated states) - Posted by Ashley (CA)
Posted by Ashley (CA) on May 25, 2007 at 01:02:30:
Newbie here looking for help adapting generic paperwork and processes to the (litigious!) California foreclosure market. What are the major issues affecting my contracts/paperwork? How do I approach discussing deficiency judgements? Can I use a limited power of attorney? Does the warranty deed need to be notarized in-home at the first meeting, or can I instruct the buyer to have it notarized at their bank and mail it to me (to document their willingness to sell)? Anything I need to document re: right to recission?
That’s all I can think of for now. Thanks for your help.
Re: CA foreclosures (vs less regulated states) - Posted by Ashley (CA)
Posted by Ashley (CA) on May 28, 2007 at 16:58:01:
Thanks for the clarification and the web resources. I’m glad for the reality check about CA risks. I truly believe there’s a niche for me in this business, and I’m willing to do all the groundwork necessary before I hang out my shingle. IMHO there are too many fly-by-nights jumping on the foreclosure bandwagon, giving pre-foreclosure investors an even worse reputation. If I play my cards right - and with enough advice and guidance and persistance I will! - I’ll be here long after the hacks have moved on to the next hot thing. You’ll see me posting a lot. Please be gentle! lol
Re: CA foreclosures (vs less regulated states) - Posted by Kristine-CA
Posted by Kristine-CA on May 25, 2007 at 21:59:28:
Ashley: I suggest read, read, read CA specific books and manuals on
this topic. You mention deficiency judgements and warranty deeds.
CA law doesn’t allow deficiency judgements against borrowers using a
trust deed and we don’t have warranty deeds here. You mention
adapting paperwork–it’s not adaptable but rather very specific to
working with people in foreclosure in CA.
Osterman already mentioned Ward Hannigan’s site,
foreclosureforum.com. Also consider going to firsttuesday.com and
purchasing their books on trust deeds and financing. First Tuesday is
an educational resource for RE agents but you can buy their books
without being a member or agent for very reasonable prices. The DRE
(dept of RE) in CA has plenty of reading on their site. And the CA Civil
Codes are an endless source of very important info (law).
Happy reading. Kristine
Re: CA foreclosures (vs less regulated states) - Posted by Bill H
Posted by Bill H on May 25, 2007 at 15:09:20:
Ashely, M. Osterman gave some good advice. CA is very tough on investors buying pre-foreclosure…there are LOTS of pitfalls and serious consequences to each one in CA.
This is not an easy …get rich quick…business and especially in CA…GO get EDUCATED…learn what you are getting into BEFORE you get into it.
Good Luck,
Bill H
Re: CA foreclosures (vs less regulated states) - Posted by M. Osterman
Posted by M. Osterman on May 25, 2007 at 12:54:30:
You may want to look over at foreclosureforum.com for your answer. Ward has a three day one on one course that can’t be beat.
Mike
Re: CA foreclosures (vs less regulated states) - Posted by LeonNC
Posted by LeonNC on May 25, 2007 at 08:14:54:
You have a ligitamite concern. The best way to get the answers you need is from an attorney. Foreclosure is a rough way to start when you’re just getting started.
LeonNC
Re: CA foreclosures (vs less regulated states) - Posted by M.Osterman
Posted by M.Osterman on May 26, 2007 at 01:06:09:
Kristine,
I almost forgot about First Tuesday. WOW what a great resource…$9.00
for some really, really great books.
Mike
Re: CA foreclosures (vs less regulated states) - Posted by Bob Smith
Posted by Bob Smith on May 25, 2007 at 22:40:32:
CA has grant deeds, which are the equivalent of warranty deeds. CA does allow deficiency judgments with trust deeds if you use judicial foreclosure. With the extra time and cost few creditors bother. CA doesn’t allow deficiency judgments under any circumstance if the debt was purchase money, which is why refinancing in CA is bad from an asset protection standpoint.