January 2, 2007

Why Should a Homeowner Deed you the Property?

Paul,

I've been talking to some homeowners with very little equity, but with multiple liens. To do the short sale I have told them that they need to deed me the property. Many times I am asked why they should do this. I tell them that it is easier to negotiate with the bank if I am on the deed and if sellers 'vaporize' I am not left hanging. Are there other reasons I can give for why I need the deed? These two reasons don't seem to make them feel at ease.

Hal

Hal,

Ask them why they are reluctant…They have no equity, their credit is about to get trashed with a foreclosure on it, and if you can come to an agreement with the bank then they may be able to get a little money…

In my opinion people that don’t sign deeds are not that motivated….As well if you show any reluctance at all then they will get a little spooked.

You can also offer some protection by signing a contract with them that says should you not be able to come to an agreement within a certain amount of time you must return the deed. As well if they won’t sign a deed get them to sign a contract and then record it.

Paul

Posted by greggdavis at 9:48 PM | Comments (1) | TrackBack

April 10, 2006

Documents I need to have

Paul... I enjoyed your seminar a night or two ago (w/ Mike Butler). In it you mentioned 5 docs that you needed the seller's signature on - 1) obviously the contract, 2) Disclosure of information (from the mortgage co or other lenders), and as I recall 3) Power of Attorney (wish I could see a sample of this), 4) Quit Claim Deed (wish I could see this one, too), and 5) lastly your CYA letter (which I hope to get soon via taking your seminar).

Your right on. You can find a warranty deed, I suggest this over a quitclaim deed, almost in any store that provides legal docs. Yes the CYA that we created is awesome.

Posted by paulwells at 3:16 PM | Comments (0)

March 25, 2006

What if they are not in foreclosure yet?

If you find a potential seller, who is getting in trouble, but has not missed a payment yet, and they are nearly 100% financed, how do you structure a deal to help them out?
Thanks

This seems to be a question that a lot of investors ask. But you need to understand that the banks, as long as they are getting paid, have no motivation to do anything to help the homeowner out. In the banks eyes everything is fine. In the homeowners eyes there are problems on the horizon. Really the only thing that you can do is to take the house in what's called 'SUBJECT TO" financing. That means taking over their payments once they give you the deed to the house. The loan remains in the homeowners name and the responcibility remains with the homeowner to make the payments. But if you do take the house "subject to" then be prepared to make the payments. I would make sure that the payments can be covered the rent.

Posted by paulwells at 7:05 AM | Comments (0)