Posted by JohnBoy on June 06, 2000 at 01:59:07:
Not true! Seller can still sell the property to another buyer as long as the new buyer purchases the sellers interest in the property. The new buyer will have to agree to be bound by the land contract agreement with the first buyer. As the new buyer, now you can foreclose on the property.
First Deal!!! Crap…its all screwed up… - Posted by Anthony - OH
Posted by Anthony - OH on June 05, 2000 at 17:17:35:
Guy calls me because he’s in foeclosure and I had left him a message earlier in the day. Sale is July 7th. He offered to sign the property over to me today if I could prevent him from being foreclosed on.
He says he owes ~50k
My Comps show FMV ~75k (I own same model)
Sounds great except he says he sold the house in 1994 on a Land Contract, but the new owners keep missing payments and he has to make them to keep from being foreclosed on. WTF???!!! Ok so best I can figure is that the new owners assumed the loan or something to that effect. He says that he has been to court a number of times, but can’t get them out of the house. I also have reason to believe they may have further encumbered the property without his knowledge.
Here is my list of things to do tomorrow.
I did find out that everybody is listed as a defendant on the civil case file. (Previous owner and new owners)
Any suggestions?
Hold on a minute . . . - Posted by JoeKaiser
Posted by JoeKaiser on June 05, 2000 at 22:52:50:
Anthony, you need to understand that “all screwed up” is a GOOD THING! All screwed up is the reason real estate investor drive nice cars.
The key is, you want to make sure that when things are all screwed up, it’s the OTHER GUY who’s got the problem.
Problems are good.
Get it signed off, right now, subject to your due diligence.
Then, go on a fact finding mission and gather up all the information about the situation. Me, I’d go knock on the door and ask them what’s up.
Once you’ve got a clear picture, you brainstorm for a solution where you can see a payday.
Here’s how your deal works in my town. Land Contract is a conveyance. Your guy assigns me his interest in the property by way of a “seller’s assignment of interest.” Now, I can foreclose away that owner contract and end up owning. I may have to bring the payments current on the first mortgage, but I’m in the game.
If the buyer is financable, I’d sit down with him and discuss the options. I’d start the conversation with, “look, I’d rather work with you than against you . . . lets see if there’s room to put something together here,” and then find a solution.
Remember, it’s the problems that allow us to get paid. No problems, and we’re all selling amway.
Joe
Re: First Deal!!! Crap…its all screwed up… - Posted by Paul_NY
Posted by Paul_NY on June 05, 2000 at 22:37:17:
Hi Anthony,
You can usually get a better deal on the house after the bank owns it.
File this one under potential properties. Check on it frequently with the bank.
Re: First Deal? NEXT! - Posted by Stacy (AZ)
Posted by Stacy (AZ) on June 05, 2000 at 17:23:12:
Not much to add, but for a first deal, I think this one is well beyond a slam-dunk. Too much risk for too small an upside. I’d pass.
Stacy
Re: First Deal? NEXT! - Posted by Anthony - OH
Posted by Anthony - OH on June 05, 2000 at 19:01:12:
Yeah I know this is one I should pass on. Except this guy is in such a screwed up situation. He thought he sold the house. He had no idea what land contract even meant. He never went to closing. He just signed what the realtor told him to.
I want to find out how he sold a property and is still liable for the mortgage.
Re: First Deal? NEXT! - Posted by tarheel t
Posted by tarheel t on June 06, 2000 at 07:35:53:
Anthony, If you do anything please carefully read again the post from Joe Kaiser. He knows what he is talking about!!! T
Re: First Deal? NEXT! - Posted by Bert ND
Posted by Bert ND on June 05, 2000 at 21:27:35:
Quoth Anthony:"I want to find out how he sold a property and is still liable for the mortgage. "
Pretty easy to figure, actually. He has a loan on the house and the bank holds the mortgage. He sold (is in the process of selling)the house on a land contract. That means the buyer is making payments to the seller, and the seller holds the title until the buyer has paid it all off. The seller continues to make payments to the bank, because the mortgage loan has not been paid off.
Sellers problem is that when the buyer doesn’t make the payments, neither can he.
This looks like one to run away from as a first timer. If the seller is having trouble removing the current resident, you probably will too. Chances are the buyer is fighting eviction on the grounds that he’s claiming an interest in the property. B will probably claim that S can’t sell to you, because he’s already sold it to B.
BG
BG