Posted by Tony Colella on June 11, 2007 at 05:04:19:
Great point. My post was directed at the owner/seller type purchase but you are dead on correct that with foreclosures (at least in NC) you are only going to be able to receive a special warranty deed (I did get a general warranty one time but think that was a fluke). Foreclosure sales are allowed to limit the exposure of the foreclosing lender and the buyer ends up waiving away about all their rights anyways.
This is one reason we need to buy for such a steep discount. If we are going to sell/give away rights we need to receive compensation in the form of a discount.
It is also vitally important, especially in light of the foreclosure, that a thorough title search be conducted by an experienced real estate attorney and title insurance obtained. Since we pay so little, the title insurance is quite cheap (and a one time fee). In almost (if not) every foreclosure we bought our attorney has found title problems. Many times the foreclosure is done by companies that batch many, many of them together and mistakes are made, notifications not documented or not given etc.
The closing attorney either solves the problems or works with the title insurance company to include this problem in their coverage.
I’m buying a sub-division in Ga. the seller says that in Ga. the buyer and seller use the same attorney, thats thats normal in Ga. Anybody agree with that?
A separate question, if a buyer was to get large cash from multiple credit cards for the down payment would you call each card company first and explain so you don’t damage your fico or would you access the cash from all the cards at once before they see whats going on and the access dries up. I favor the first scenario but would like some other view’s.
Thanks
Dave Fl.
Posted by Greg Meade on June 09, 2007 at 20:02:40:
A good ole Florida boy has to go North to find a land deal LOL.
Dave, I maxed my cards about 4 years ago… My Chase MC was a 20K limit so i thought i could go in and cash advance up to my limit…Wrong. Chase let me cash advance 5500. did this with my Visa also and got over 10K total to purchase a repo. Took 5 months to repay and credit score dropped 17 points to low 700’s.
Long time no see Dave
Posted by Tony Colella on June 09, 2007 at 07:56:21:
As Barry wrote, here in NC it also true that the buyer and seller typically use the same closing attorney however Barry is dead on… Buyer picks the attorney.
Even if I were to buy in a state that did something different, I would always pick my own attorney to represent me.
Even in NC we do sometimes run across a seller who is attached to their attorney. No problem. I have their attorney draw up any paperwork from them (typically the deed) then have my attorney review it. Most here use a stardard, boiler plate deed so no problem has surfaced yet and I always make certain to receive a warranty deed.
Be sure to use closing attorney’s who do this all the time. I like small attorney offices myself as I find I get better, personal service. I do not like the larger firms as the lawyers do little of the work and most is boiler plate created by paralegals who are not all of the same skill level (don’t get me wrong, some are better than the attorney).
I also don’t just want a general attorney, I want a specialist.
I am not in or from GA so can’t help with your first question but on the second one I think you don’t have to worry about either.
If you have the credit cards already then it shouldn’t keep you from being able to pull the cash from them all. Yes it will hurt your FICO but if you already have access to the cash all of your cards are taking into account that you could at any point pull all the cash from all of them and set your limits accordingly. Anyone pulling your credit looks at available lines of credit so they are already prepared for this possibility.
Tony,you state you always receive a Warranty deed. A lot of the foreclosures I come across are sold only with a special warranty deed. This is usually stated on a paper taped to the inside of the house. But not always.Do you
pass on these deals if thats one of the stipulations?