First, can someone comment on some of the speakers out there that teaches to leave small deposits like $10-$25? Does anyone here do this? It seems a lot of homeowners get offended with this. Generally, how much deposit should be left?
Okay, I’ve been trying to work with this homeowner on my first deal. Here’s the story. I signed a contract with him a few weeks ago to save him on being forclosed on. Judge extended to Jan 9th. The day he filed extension, I bumped into him by the courthouse and saw him with another investor who he introduced me to >:(
Later that day, I mentioned that we had a binding contract which I left a small deposit on. A few days later he mentioned he wanted me to still pursue the deal… so I started to talk to the lender for possible short sale. The house is a 2 family (identical both sides). The house needs about $40-$50k in repairs. The lender told me their inspector/appraiser is coming this tuesday the 27th. The appraiser said it will take him about 2 days to submit his report to the lender. I’m concerned cuz, the sale date is Jan 9th. Today, the homeowner is telling me he’s been approached by many investors trying to make an offer. He wants me to tell the lender not to send their appraiser this Tuesday and he’ll call me back on Tuesday.
Could you believe the homeowner wants $30k and 6 months to live in one side for $900-$1,000 a month in rent? He wants a reward for not paying the mortgage for 2 years? He said if I can’t give him that then he’s not worried with filing Chapter 13. I may be able to get him the $30k if the lender agrees to my payoff offer, but from all the posts I’ve read, it says…make sure they vacate the property. They are elderly and he’s asthmatic. He doesn’t want to move during winter. I’m afraid he will take another offer from another investor. Is he forgetting we have a contract in place? I guess I couldn’t ask for an easy 1st deal huh? Comments anyone?
Hey, if you have the house under contract. Then you should be able to take the other investor aside and tell him informally that he has no deal because the homeowner signed a contract with you. . I dont know the legalities about this. This is the first time i heard about homeowner going around the current investor. By any chance do you have the warranty deed as well. If that is the case, the homeowner cant pull a fast one on you cuz I think you can record it and the porperty will be in your name. However there are much more qualified investors, i’m just a newbie investor from florida learning the short sale process. Can anybody else give their opinion on this?
If you are doing a short sale. The owner can’t get a dime from the deal.
If you want to pay them to clean up the place when they move out, even if it is a $1000, that’s OK. But the lender is not going to take less than what is owed and let the owner put money in his/her pocket.
I would think it would be ok for the owner to stay in one for 6 months if he is paying market rent, ask for the 30K…not to sure on that one buddy!
See if you can haggle him down to a number you feel better with. Try to show a little mercy and graceful charity to the old one. As long as it makes business since.
Times are hard, people are hurting. Share when you can.
here’s an update. My homeowner was shopping around for the best price from othe investors after I had a signed contract with him. Well, he didn’t have any solid offer and called me very late Friday and asked if I was still interested. The sheriff sale was today (Monday). His lawyer was not aware of the details and my lawyer could not reach his lawyer over the weekend. Early this morning my lawyer told me that it’s a dead deal, because by the time the homeowner’s lawyer got back to him it was an hour before the auction.
Please correct me if I’m wrong. Is the redemption period for NJ 10 days? Does this mean the homeowner has 10 days to buy back his house? If yes, how much? Is it the amount it sold at the auction? Or the amount it was going into forclosure with? Do I have a chance in trying to still make this deal work? Not really clear on redemption. If someone out there can give me some insight I’d appreciate it. Thanks.
I did a little more research and the redemption period is 10 days. Does anyone know the steps I need to take? I read on one of the posts to have the redemption sign over to me. ???
What do I pay? The amount it sold at the auction? Or the amount it was going into forclosure with? Can I still do a short sale with the bank? If yes, can this still be a wholesale or do I need to do double-closing?