Posted by Walt (FL) on December 07, 1998 at 24:44:05:
Had a lady call my ad with a house in Foreclosure, she seems to be willing to Deed me the property just to get rid of the ?problems?. She said she had 3 bad sets of tenants, and was not interested in being a landlord any more. The house is 1500SF 2/2 w/ CHA worth about $72K, The balance on the NationsBanc Mtg. loan was $48.4K @8.9% originated in 1/92, with arrearage of $3K= $51.4K Total, payments= $416 without Attorney & FC fees. FC was initiated in early Nov. so its seems early enough to keep fees low, I think. Oh, she said the last tenants that were the latest problem have since vacated the premises when served with FC papers. They bought for $55K in 1992, and there doesn?t appear to be any other liens.
I am unsure of the way I should transact the deal, Should I get her to sign a deed to me in front of a Notary before contacting the bank? Should I get her to deed it into a land trust and assign me beneficial interest (I was thinking that at this point the Bank would figure out what was going on since attention has been drawn to the loan via FC). Should I contact the Banks Attorney prior to getting the deed or get the Deed (Quit Claim?)And go from there? What other documents should I have her sign and is there a CYA [Cover Your Assets] document for these situations? I should have her sign an authorization to release information before contacting bank or banks attorney?
Should I have an attorney structure this for me as this is my all new to me, but I think I may have something to work with here with about $10-$20K in equity. Any other hints, tips, information would be appreciated. I have not seen the property yet but want to be prepared (have paperwork) if she is ready to sign, She seems motivated to me!
My immediate plans are to: 1. Post for input on CREONLINE.COM 2. Drive By property 3. Check File, Mortgage, & recorded Documents at courthouse 4 Call a few attorneys? for input 5 Call Legrand Hotline 6 Call Banks attorney???
7.Get her to Deed me property!!! 8. Check Title
9.No exit strategy yet, but there seems to be a few available.
PS Dealing with the bank and the proper structuring of the paperwork are my primary concerns if I ?Get the Deed?, is this justified or what are the REAL pitfalls here? Would it be possible to take the deed ?subject to? the mortgage in this FC situation?
Thanks So Much,
Walt (FL) IBUYHOUSES@ij.net