Re: L/O Seller in foreclosure - Posted by Jim IL
Posted by Jim IL on December 19, 2000 at 19:23:35:
I just read the entire thread here, and it is good to hear that you got your buyer to agree to the solution you posted.
Please disregard the “Stanley” type of postings, they are common here, and anywhere online, but certainly not the majority.
At any rate, in the future, make sure to C.Y.A.
You have some great suggestions below for this.
I try to get my sellers on L/O’s to allow me to either send the payments directly to the lender or use a third party, but on some occassions, they will not do this. (for whatever reason.)
Rather than run from a good deal, due to one little item the seller wants, I try to compromise.
I have one seller on a L/O that wants to “See the funds in his hand every month”, and therefore DEMANDED that I send the payments to him and no one else.
I explained my releuctance to him and we came to a solution.
I now have the info regarding the loan on file, as well as an “Authorization to release loan info” for that loan.
In addition to the contract stating that the seller cannot encumber the home above out sale price, I added something.
I am allowed with this “Auth to release” form to call the lender and “Check on the loan status” occassionally.
My change to the agreement states that in the event the seller gets 30 days late, I am then authorized to send all future payments directly to the lender for the duration of the agreement, and that the seller MUST pay the arrears within 30 days, plus any late fees, or title will pass.
I also have the deed in escrow with that one, so I feel pretty safe.
Bottom line, C.Y.A. on ALL deals, and be prepared to be creative to accomplish this as well.
We after all, “Creative” investors.