Paperwork Confusion - Posted by Stacy

Posted by Jim Pasquini on February 08, 2000 at 16:28:28:

there are laws in place that require a realtor to have a bond in place if they want to sell their house if they are in default. Doesn’t mean they abide by it, but they could end up with their behind in a sling as well. There are numerous other laws all designed to protect the homeowner, but what they do is limit their options.

As I understand it, according to California Civil Code purchasing the property with an option for the seller to reacquire is not legal. This is what old McCorkle was espousing.

In California in particular I know of two people that teach foreclosure investing. Bruce Norris does, and he is speaking at the LA Real Estate Investing Club tonight. I’ll be attending since I’ve never heard him speak, though he comes highly recommended. The other party is Tim and Alexis McGee up in the Sacramento area. I’ve been through their training and thought it was very valuable.

There may be others I don’t know about. Pre-foreclosure investing in California can be a mine field. You have to know how to dance in that mine field, and cover your behind while you are doing it. When a homeowner is in default, they are looking for someone to sue thinking they are going to hit the lottery and solve all their problems.

Paperwork Confusion - Posted by Stacy

Posted by Stacy on February 08, 2000 at 13:53:01:

This site is a blessing to those of us seeking answers to the mulitude of questions we have in just getting started in real estate investing.

I’ve learned so much from the examples and formulas use in stories, such as L/O, flipping to investors, foreclosures…
BUT there never seems to be information on the PAPERWORK used to process the transaction.

Could someone be so kind to give a quick review of what’s needed in a general situation not requiring any special circumstances. Should you use the Purchase & Sales agreement you’re using in flips in OTHER transactions.

What about:

“Subject to” - do you just get the deed or is something else required.

Owner financing - just the Purchase and Sales agreement?
Do you need to record a mortgage?

Assumptions without qualification - Purchase & sales

Foreclosure- If in pre-foreclosure, can I simply sign the Purchase & sales agreement with seller, pay any back payments, negoiate liens and that’s it. Or do I need additional paperwork to cover my …

Perhaps this is a lot to answer in simple terms, but I know from my reading on this site, the paperwork is KEY.

Much thanks in any assistance you can provide

Re: Paperwork Confusion - Posted by Mark (SDCA)

Posted by Mark (SDCA) on February 08, 2000 at 14:18:32:

I am only going to address 2 areas because this is all complicated stuff. I strongly recommend you get a lawyer (I am not one).

For subject to, one document you must have is a CYA letter signed by the seller acknowledging that he knows he is still liable for the loan, holds you harmless etc.

Pre-foreclosures:
This is a minefield created by state law. If you are seriously going to pursue, get an attorney. Here is a post detailing what can happen (in California at least) if you are not aware of the dangers.

http://www.calpost.com/Library/Cameron/cameron1.htm

Cheers,

Mark

Re: How do you handle pre-foreclosures in Cali now? - Posted by Chris

Posted by Chris on February 08, 2000 at 15:43:33:

Hi Mark-

I read the article the other day. The law that California has on the books is confusing. What do you folks do out there now for pre-foreclosures?

It seems like the only way to go about this is to buy the property from the homeowner and get them out of the place. If you try to help them out by creating a repayment agreement or doing a lease/option where they rent and ultimately re-purchase it looks like a visit in front of the judge.

-Thanks, Chris