Posted by B.L.Renfrow on March 10, 2001 at 14:23:53:
I suppose you COULD get by with just a deed, but why would you?
At a minimum, I use a P & S agreement (not mandatory, but nice to have, especially if the seller gets remorseful down the road), bill of sale (for personal property in the house), seller’s authorization to release loan information, letter to the insurer, seller’s power of attorney, seller disclosure form (CYA document), and a warranty deed.
If you’re using a trust, which you should be, you’ve also got the trust agreement and assignment of seller’s beneficial interest.
I’m experimenting with pre-foreclosures. I’ve spoken with a couple of possibly interested owners. I will take over payments (subject-to), cure default and have title transferred to me. I have a quitclaim deed and Bronchick’s CYA letter to give owner explaining they will remain liable on loan etc. My Question: Isn’t there more paperwork than this?? It seems a little too simple. Any input appreciated.
Don’t forget my top ten list of lame excuses . . . - Posted by JoeKaiser
Posted by JoeKaiser on March 10, 2001 at 23:53:53:
Actually, there were seventeen lame @ss excuses I’d chronicled the last time I checked. That’s 17 lame excuses that are commonly used by dishonest tenant-buyers, forgetful sellers, and legal aide and their (sometimes, okay often) amoral attorneys . . .
What? No one ever tried to renege on a deal with you because “his hearing aide wasn’t working at the time he closed.” I once got that one . . . not from the seller, but from his attorney. It arrived late one night in the form of a summons and complaint.
Then there was a time a seller wanted out because his attorney claimed he was on drugs at the time he signed the paperwork. When I pointed out to the attorney that his client was currently on probation and that his admitted use of illegal drugs was his ticket back to the slammer, the attorney responded by letter, saying that he’d erred. It wasn’t that his client was on drugs, it was that his client had forgotten to take his legally prescribed drugs. See, that’s a sleazy attorney, and you need a clause that protects you from this sort of thing.
Seventeen lame excuses, from “my hearing aide wasn’t working” to “I thought he was making me a loan, not buying my house,” all on two tidy checklist type forms (one for selling, one for buying) where each and every paragraph gets initialled and the form itself notarized
“That’s not my signature.” Oh yes it is, sweety.
Joe
PS. Some of my best friends are attorneys. No, really.