Help! Seller wants to take my docs for review - Posted by DaniB

Posted by David TN on July 01, 2003 at 14:20:52:

I figure if this guy is going into foreclosure, he is getting VERY LITTLE IF ANY cash from the investor. I figure he should count himself fortunate that someone is interested in helping him out of HIS problem. If he was the expert in this situation, he could figure his way out, but he is not, you are.

You could tell him that you have other houses to look at and invest in. If he wants you to purchase his house, then sign the deed and lets get on with it. Otherwise you are out of here, and on to another house.

Help! Seller wants to take my docs for review - Posted by DaniB

Posted by DaniB on July 01, 2003 at 10:02:56:

I have a seller who is going into default. I have already been to his house twice. The last time he refused to sign the deed over to me since he was advised not to because “then you will own my house.” He DOES want me to make up all his back payments to the tune of $6300. Today I told him that if I can’t have the deed I can’t market the house or deal with the second mortgage holder to possibly get a discount, much less pay his back payments for him.
The house is only two years old, worth about $429K, he is two months behind on his first of $271k and also two months behind on the second of $98k. He is unable to pay any back payments since he lost his job.
He wants me to meet him today, with the docs filled out so he can have his banker review them. Then he’ll have them notarized if the banker agrees. He says if I don’t have anything to hide I’ll do that.
I figure his banker is the one who has been telling him not to sign the deed and will probably find something wrong with my documents.
Is this deal worth all this back and forth stuff?

Could someone give me some advice on this?

Next - Posted by MoniqueUSA

Posted by MoniqueUSA on July 03, 2003 at 22:58:29:

This seller thinks HE is in control. That’s way he is so difficult to deal with … he’s gotten demanding.


Thanks, you’ve all given some really good advice - Posted by DaniB

Posted by DaniB on July 02, 2003 at 08:15:49:

I’m listening. I need to be in control - not the seller. I may have to walk away from this one and I won’t shed any tears over it. The only way I can proceed is if the 2nd mortgage holder will discount the $98k debt. IF I agree to take this guys deed then I should know within a week or two if the mortgage company will work with me. If not, then he can have his house back. I haven’t agreed to give him any money up front which is why he was so upset " you need to buy my house now and pay off the back-payments".
There are better fish to fry. Today is a new day.

Re: Help! Seller wants to take my docs for review - Posted by John Katitus

Posted by John Katitus on July 02, 2003 at 02:18:46:

Walk away. From the numbers you have given, there is too little profit potential and way too much exposure. You will look back and be glad you did.

What creates back & forth w/ sellers - Posted by JT-IN

Posted by JT-IN on July 02, 2003 at 24:24:24:

Is a Buyer/Investor who hasn’t taken control of the deal… I realize this is difficult to do when you are a greenhorn, but it is still the cause, nonetheless. Decide in your mind… you do this by rehearsing and re-rehearsing what you are willing to do in this deal… You must have the act down crystal clear; nothing less.

Then you step up with this seller and take control of the deal by clearing the air, letting them know exactly how the deal WILL BE DONE… This may be difficult at this point, since you have been playing by different rules up until now.

You may not be able to win this one, but use it simply as practice for the next deal, if nothing more. Act as if you this is the only it will work, and anything else you are outta here… If you portray this properly you may have a chance at saving the deal… If not, so be it.

You really do not mention what your exit strategy is on this deal, nor what type of profit potential you anticipate. Lacking those details, it is difficult to comment much on the deal itself… other than you are the Quarterback, he is the waterboy… Anything else is UNACCEPTABLE… He works off of your que…

Just the way that I view things…


Re: Help! Seller wants to take my docsUPDATE - Posted by DaniB

Posted by DaniB on July 01, 2003 at 20:28:21:

Ok, I’m a wimp. I called my attorney and then called the seller to cancel our meeting today but he was in his car and almost there. So I took him blank docs and discussed his problems. Know what he wanted? If I don’t have a buyer for his house in 60 days can he get his deed back. Sure, Bucko. Let’s see, I have control of the house, I sell it and make money or I can’t sell it in 60 days and I’m off the hook. No problem.

He will probably have another “banker friend” request tomorrow but I’ll have more guts this time and I am prepared to walk away.

Thanks to all of you for all the great input. I’ve learned a lot from the pros.

Re: Help! Seller wants to take my docs for review - Posted by Jerry Martin NC

Posted by Jerry Martin NC on July 01, 2003 at 20:05:43:

No deed No deal!

My take … - Posted by Redline

Posted by Redline on July 01, 2003 at 18:26:51:

I would give him BLANK forms to have reviewed if he likes … or better yet tell him to find someone ELSE to give his dead-beat self $6000 to save his house. Either he has issues or you weren’t clear enough to convince him. I’ve been there.

Remember one thing: HE NEEDS YOU, YOU DON’T NEED HIM.

Don’t forget it.



Re: Help! Seller wants to take my docs for review - Posted by Bill

Posted by Bill on July 01, 2003 at 13:56:00:

Tell the guy that he can take the papers to anyone he wants.

Tell him also that no matter what his advisors tell him, you arent changing anything in the offer, (unless its to your advantage) and that he has one day/two days, whatever, to make up his mind or you are walking.

Re: Help! Seller wants to take my docs for review - Posted by Peter_MD

Posted by Peter_MD on July 01, 2003 at 13:07:54:


You said, “Could someone give me some advice on this?”. I sure wish I could be direct and to the point like Joe Kaiser, you know?just pull that band-aide off in one big pull.

I believe there are many things that your post did not cover, however, I’ll try to respond the best I can. We don’t know your experience, however, I’ll assume that you are at least a beginner when it comes to Pre-Foreclosures. Always remember, working with any situation that involved Pre-Foreclosures is an art?pure and simple. You need people skills like nothing else in this world (like a Markus Welby, MD).

You said you met the seller at his house twice. First of all, what did you do on the first visit? Did you try to educate him and SELL him something? Look, you are not to sell anything?you are to advise, consult, negotiate, and facilitate a solution to HIS problem that will lead to a Win/Win situation for him and you. Of course even the very basic beginner reading this post will know that your second visit was to make HIS problem your problem?especially when he said that remark about if you don’t have anything to hide, you’ll do it.

Second, we don’t know how you acquired this prospect, however, we’ll assume you got a phone call from some form of solicitation. On that initial phone call, you had to be in charge and in command. You needed to quickly find out what the problem is (why he is calling) and what his needs, not wants, are. You needed to assess the situation quickly so that you could (1) determine if you could help him in his dire situation, and (2) what’s in it for you. You failed that and attended a seminar, conference, and bootcamp all in one.

Don’t ever leave your office running after a prospect. Get to the “what is it you need” or “why are you calling me” right from the start. The situation now sounds like (your later post) he’s demanding money. Money??? Heck, it’s going to be difficult to “make him whole” after becoming $6,300 behind along with late charges, legal fees, etc. Does the $6,300 include the July’s payment that is now due? If not, you’re over $10,000. and he’s still in the driver’s seat!

Stop this foolishness and call the guy, tell him what you can do for him, but only if he will cooperate 100% in your efforts to remedy his situation. Get the verbal approval that he will sign the deed over to you or tell him to have his banker help him out of this mess.

If he says ANYTHING but YES, COME OVER AND GET THIS DEED AND GET ME SOME DEBT RELIEF, tell him, very pleasantly, that you have others that need your attention and for him to call you when he’s ready to have his problem solved?just add at the end that the terms will be less favorable then than they are now.

?and just move on?dealing with pre-foreclosures reminds me of the situation where someone would beat their head against the wall, and stop when it starts to feel good?

Re: Help! Seller wants to take my docs for review - Posted by Steve

Posted by Steve on July 01, 2003 at 12:58:23:

If the seller had your completed docs what is to keep him from shopping your offer? For example, the banker could say I can do that and pay you a little bit more. Tell your seller that it is your company policy not to release completed but unsigned documents for this reason.

It sounds like the seller is not yet motivated enough if he is playing these games with you.

Re: Help! Seller wants to take my docs for review - Posted by John (Rome)

Posted by John (Rome) on July 01, 2003 at 10:27:59:

ask to be present to meet the banker and take your attorney

Re: Help! Seller wants to take my docsUPDATE - Posted by B.L.Renfrow

Posted by B.L.Renfrow on July 01, 2003 at 22:35:38:

Are you serious? You’re going to put $6300 into this deal PLUS holding costs…then you’re just going to give it back to the guy if it’s not sold in 60 days? I hope you were being sarcastic.

This is a pretty expensive house. Your intention is presumably to pay the arrears and take title subject-to the existing financing. I would imagine the market for potential tenants or buyers would be quite small in that price range, unless this is typical for your area. Are you prepared to hold the place a good while, if need be? If you have the funds to do so, fine, but if not, you shouldn’t go any further with this deal…especially with an uncooperative moron for a seller.

Brian (NY)

Re: Help! Seller wants to take my docs for review - Posted by DaniB

Posted by DaniB on July 01, 2003 at 10:35:50:

Thanks, John. I could try to get my attorney to meet with the banker, but on such short notice I doubt he could. This being so close to the 4th. You think I should put it off until I have my attorney present?

Re: Help! Seller wants to take my docs for review - Posted by David TN

Posted by David TN on July 01, 2003 at 11:34:25:

I’m always amazed at how the seller’s attorney or banker advise them not to sign documents. If the seller was in a good position it would be different. The seller is about to lose his house to foreclosure and the professionals are in essence advising him to go ahead and lose his house. I always wander if the banker or lawyer is willing to buy their house. I doubt it. Unless the deal is really worth the effort, if I can’t get the deed then I’m looking for another deal.

Re: Help! Seller wants to take my docs for review - Posted by DaniB

Posted by DaniB on July 01, 2003 at 11:40:48:

I’m getting real tired of this guy, too. He wanted me to pay him
CASH the last time I met. Then he called me four times to see if I
would still do the deal. In about one to two months he’s probably
going to get a Notice of Default from the primary and then what?