Posted by Soraya on May 01, 2000 at 11:36:39:
You are taking a risk whenever you work on property before you have title. I had a lease option and the lease allowed me to fix up the property which I did. When it was time to close Seller wanted to back out. I had my attorney threaten a Specific Performance lawsuit before the Seller would allow me to buy. In your case. Make sure there are no Sellers contingencies that are not met. Make sure you perform exactly as your contract reads.
Need Help on Protecting Fix-up Cost - Posted by StewNE
Posted by StewNE on May 01, 2000 at 09:57:47:
How do you protect yourself if you purchase a property that needs a lot of work. You want to start before the closing. What keeps the homeowner from waiting until you made all the changes and then backs out before the closing day? You can’t take the new roof back off. I don’t want to wait until closing to get started on the work. Any suggestion are greatly appreciated. Thanks in advance.
Numbers
FMV 75K
15K fixup cost
After I included all of the closing cost and a cost to use a realtor to sell.
I came up with a purchase price of 35K.
House is listed with a realtor and it’s going in to foreclosure
Risk vs reward - Posted by Bud Branstetter
Posted by Bud Branstetter on May 01, 2000 at 21:29:34:
You can do things that take a minimum amout of cash to do. A new roof is not one of them. Putting some felt over an area for a temporary fix because the roof leaks is a lot cheaper. You may lose that effort if they don’t close.
Then there is the mechanics lien approach. Just like a home improvement. It can be done if the existing owner is in tune with you. It can also be a problem if you don’t know you homestead laws and do it the wrong way. You also face the possibility of protecting your lien against the foreclosure.
Re: Need Help on Protecting Fix-up Cost - Posted by Trump
Posted by Trump on May 01, 2000 at 16:40:21:
Well, looks like your about to buy yourself a seminar.
NEVER EVER fix someone else’s house. It is their house until you have the deed.