Posted by WilliamGA on June 08, 2000 at 17:32:20:
dew,
You need to get the seller to complete an “Authorization To Release Information” for you. It should have the names of the seller(s), their ssn’s, the loan #, and the name and contact # of the lender. They should sign it for you also.
With this, you should be able to get the info you need.
Good Luck!
WilliamGA
Newbie- Report (Comments Please) - Posted by Joe Simmons_DE
Posted by Joe Simmons_DE on June 07, 2000 at 20:10:30:
I’ve started in June with CRE and so far I’m looking at a foreclosure deal. First, let me thank all of the people who post to this newsgroup. Through studying and reading all the information I could find on Real Estate Investing I now have the courage to go out and make things happen.
Got listing of properties for the upcoming tax sale (June 9th), found a 3BR 1B, listed for $43,000 that’s close to my house. After researching the property Tuesday I went an knocked on the door. The owner and his wife are having medical problems; they were trying to get the money to restore the loan. I left him my card to contact me if they couldn?t raise the money.
Details: After Repairs FMV $65-70K
1st Note Balance $37K
2nd Note $7K (Gov. rehab grant-Due on sale of house-10% per Yr.)
Back Payments plus Fees $3K
Repairs $3-5K (Paint, rugs, etc.)
As of today I could not get hold of the owners and after checking with the county the sale is still on for tomorrow!!! I already contacted my bank so I could have the funds available for a subject-to deal. I will prepare all the docs just in case I can reach them in the morning.
Please any comments or suggestions!
Re: Newbie- Report (Comments Please) - Posted by B.L.Renfrow
Posted by B.L.Renfrow on June 08, 2000 at 10:33:07:
This sounds like it COULD be a decent deal…but you are up against a wall due to time constraints, at this point – ESPECIALLY if the seller is making himself hard to find.
I’m a bit confused though. Is this a municipal TAX SALE, or is it a LENDER FORECLOSURE? You make references in your post to both situations. Which is the case?
When you say you have “contacted my bank so I could have the funds available for a subject-to deal” are you talking about the $3k necessary to bring the loan current?
If so, this sounds, on the surface, like an excellent subject-to situation. HOWEVER, a big problem, with the sale scheduled for tomorrow, is having the time to perform the necessary due diligence – like a title search, to determine if there are other liens or attachments the owner “forgot” to mention, checking with the lender to determine the actual loan balance, etc. I suppose you could always make your deal contingent upon these factors…so if the seller is being less than honest, there’s no deal…but then you’re out the $3k in the event things aren’t what you have been told.
I don’t mean to sound cynical…but it’s just good business. Sellers conveniently “forget” things all the time. You should plan on verifying EVERYTHING they tell you. For example, I just did a subject-to deal myself, had the attorney do all the title/record searches, etc and all was OK. Went to have the city turn the water on yesterday…OOPS…seems the seller’s tenants left an unpaid $200 water bill. In my town, they don’t attach liens for water bills…they simply won’t turn it back on until they are paid. And I KNEW enough to check…just let it slip by. Technically, it is my seller’s problem…but guess who is going to have to take care of it. Not a big deal, but just an example of how things can sneak up on you.
If your deal is a lender foreclosure, perhaps the seller could get them to postpone the sale a week or two – if they can convince the lender the loan is going to be brought current right away. I sure wouldn’t hold my breath on this, however.
It sounds as if the seller may have simply given up in this case. If that’s so, and with the sale tomorrow, I suspect you may not have enough time to pull this together.
Brian (NY)
Re: Newbie- Report (Comments Please) - Posted by dewCO
Posted by dewCO on June 08, 2000 at 17:09:32:
Nice post and info. Thanks.
How do you get the lender to tell you the loan amount and costs needed to bring it current. Thought you need a borrowers social security number, etc. Do they just talk to anyone and give out this info.?
Follow-up - Posted by Joe Simmons_DE`
Posted by Joe Simmons_DE` on June 08, 2000 at 14:24:58:
Thanks Brian Yes, this was a forclosure sale. This morning when I went to the court house, the sale was cancelled, but there were at least two other investors there to bid on the house. The owners must of made a deal with the bank or file bancrupcy. Yet, I glad this ended this way because I leraned so much and next time I thing I’ll be better prepared. On to the next deal====>>>!
Re: Newbie- Report (Comments Please) - Posted by B.L.Renfrow
Posted by B.L.Renfrow on June 08, 2000 at 20:51:55:
Yep…just as WilliamGA says. Then, you just call the bank, get the appropriate fax number, fax them the authorization and you should be all set.
Without it, they won’t give you the time of day.
Brian