Posted by Brent_IL on September 02, 2003 at 08:49:28:
Yes, there’s much else to it, but it’s things that can be handled by qualified third parties, e.g., lawyers, and title companies, et al. If warranty deeds are used in your state, use it.
I wouldn’t go overboard on the “fairness” ideal. It does you no good to make the seller reasonably whole if doing so increases the risks to you substantially. The numbers have to work all the way around.
legal questions - Posted by sonny
Posted by sonny on September 01, 2003 at 14:30:47:
Hi everyone,
Can someone help me to see this deal through. I am ready to offer a foreclosure recipient a deal. Since he have high equity in property, I wanted to be fair to him. Poor guy is going through some bad times. I know its not my fault that he is in his situation. I am in California. I plan on giving him some cash, bring the past dues current, fix up necessities for a curb appeal, and resell. Here’s where it gets cloudy for me. If I have him sign a quit claim deed and put me on the trust, will there be repercussions? Will it show foreclosure on my credit report even if I bring it current? If there is redemption period, can he exercise this option? I have good credit and cash to see this deal through. I just would like to draw up a contract with him and get started ASAP! Please render some thoughts on this matter experience investors out there. One more thing, my main goal is to take possesion of the property with no interactions from the seller. If he quit claims the property to me, he will lose total interest in the house right?
Re: legal questions - Posted by Ronald * Starr(in No CA)
Posted by Ronald * Starr(in No CA) on September 02, 2003 at 11:51:23:
Sonny–(CA)-------------------
Or is that Sunny? As in Sunny CA or in getting a great deal is a sunny deal?
Anyway, I am glad to see that you mention getting an attorney.
You need to either read the equity sales statute or you need to have an attorney who has done so help you.
I’m assuming that this property owner is also the occupant. If that is not true, the following is not true.
You can get a quit claim deed. You just cannot get it immediately. You have to sign a contract to buy the property and can give NO “consideration” to the seller for a minimum of five days. The contract has to have specific wording, which is in the law, in specific type faces and type sizes, specified in the law. An ordinary purchase agreement, even that of CAR is not adequate.
You can get a purchase agreement which meets the law from “First Tuesday,” a publication in Riverside, CA.
Good InvestingRon Starr******
Re: legal questions - Posted by Brent_IL
Posted by Brent_IL on September 01, 2003 at 15:40:21:
As Ron Starr cautions, there are a lot of laws that apply when dealing with a homeowner in foreclosure. Get a RE lawyer.
I’d just buy it from him on mutually agreed upon terms under the lawyer’s supervision. When someone quit claims property, they are giving you whatever interest they had in the property, even if the interest was none.
Re: legal questions - Posted by sonny
Posted by sonny on September 02, 2003 at 03:19:17:
Thanks Brent. I forgot to mention, I will not go about this without a RE attorney. Simple as the deal sounds, I know everything has to be on contract. He is willing to take the cash and move on. My plan for the deal is feasible right? Owner can’t make payments, buyer steps in, give owner some money to move on and quit claim deed and resell. Anything else to it?