Posted by Ed Garcia on January 16, 2001 at 15:16:51:
Anna,
I’ve received your e-mail, of course you can call me. My number is (909) 944-0199
Till then,
Ed Garcia
Quitclaim? (I’ll see Sellers today) - Posted by AnnaSalk
Posted by AnnaSalk on January 16, 2001 at 09:26:38:
JohnBoy gave me a suggestion I was looking for, ref. the post below, “motivated seller needs a Doctor of Solutions”. Now I would like to follow that suggestion; take the house over “subject to” the existing mortgages, then sell the house on a wrap to another buyer on contract for deed.
Recap of my scenario: probably soon to be pre-foreclosure although payments thus far are
made. SFR, value about $150K, first $70K and second $35K. Seller very motivated, tried to find creative solutions himself. Equity does not seem a priority, he would like to use it in the situation. He has lost his credit and part of the income due to illness. Three of us, him and his wife and myself have a good rapport over the phone. They will probably go for anything that is reasonable and I will see them in a few hours for the firts time.
I hope of course to get an answer to this post before my visit. Possibility is that it will not work out that way and I will make another appointment with them. Still, naturally, time is of the essence. (Also, wife will go out of town tomorrow for a few days.)
I have made many mistakes in my short creative re career… but probably the biggest one was not to buy appropriate books. I will have to do so a.s.a.p. In the mid time I searched through materials I have available for the forms, from Quitclaim to Contract for Deed etc… while thinkng of how to put it all into a working arrangement per JohnBoy’s advise.
(I have recently gone through, or, rather, made money on, a flip and know how many things could go wrong without major mistakes. Mistakes on top of situational bumps could probably kill a deal… My lesson #1 and promise to myself is to avoid now on a close of escrow…)
So now I have the forms in front of me. I also looked through other posts, i.e. that of Paul in BR below on pre-foreclosure, and here are my questions:
Do I use Contract for Deed, not to trigger the due on sale clause? Subject to the existing mortgages in the addendum? As well as subject to the title search and final attorney’s approval? What should I say as to the existing mortgages? What exactly is my contingancy that I am trying to achieve? Or, should I use Quitclaim? With quitclaim, would I be responsible for the very next payment? Now, some people feel that it is best to contact the lenders (I did so in my previous deal,a short sale) but some say that this could trigger the due on sale clause?
(Last and probably least problem is my new licence… Probably the worse that can happen is that I will lose it… Although acting as a principle could cover that… and I know of so many buyers who would probably like the idea of a wrap… Everything could work but I am a little overwhelmed at this point, particularly because of time factor.)
Thank you Ed for patience and possible help from you and/or others. I may hold the gold after my stone will be removed from over me, as in your thought with the observing king…