Suing a homeowner in foreclosure is like trying to get blood from a turnip. I get the deed when I prove to the owner that I have a buyer. If he doesn’t want to deal, fine, good bye, good luck. Heaven knows that there is no shortage of other homeowners in the same situation.
Posted by: Gregg975 …
Why exactly do you get the homeowner to Quitclaim the deed to you?
I do not get the owner to quitclaim, I need a grant deed, which I purchase. I need the deed to complete the sale. Every owner I have dealt with so far is wrestling with significant cognitive issues. They don’t return phone calls, they don’t keep appointments, they’re casting desperately about for a better solution than the one you are offering. Consequently they screw themselves and in the process screw you.
By getting the deed I cut them out of any further involvement in the process.
Wheelema - I’m curious as to the timing of events when you do a SS deal. Are you saying that once you have a buyer you requre the seller to GD the property to you and then you negotiate with the lender? Do you simply tell the lender you’ve taken title? What if the lender requires the borrower’s signature on something relative to the debt obligation? And at what point do you get the prior owners to vacate?
Wheelema - I’m curious as to the timing of events when you do a SS deal. Are you saying that once you have a buyer you requre the seller to GD the property to you and then you negotiate with the lender?
Not exactly. I won’t go to a homeowner until I have a prequalified buyer (I’m a loan broker). The buyer needs to agree to be flexible as to where ‘he’ is willing to buy… we’re looking for homes that the buyer can afford. I then crunch the numbers to find several homes in foreclosure, preferably early in the process, the meet the buyer’s constraints. I then contact those homeowners to determine if they want to sell showing that I have a prequalified buyer. Hopefully I get several authorizations to release and have them complete a SS package but at this point I am not trying to grind the homeowner in any way, shape, or form. I then contact the ‘bank’ for the loan information, forward the SS packages, a sales contract showing the buyer’s wherewithal, provide the HUD1 (calculated by my title company) which has my offer, and my drop dead date. I call back every three days to make sure the ‘bank’ has the package and no questions, and then I ignore it and work on something else. If the ‘bank’ comes back with a release, fine. If they want to ‘negotiate’ I make it clear that I have already cut it as fine as I am able (I try to be very realistic with my numbers, I am not out to make a ‘killing’) and that… regrettably… I can’t budge. Take it or leave it.
If they take it I go to the homeowner (who most likely is still thrashing around) and explain that the ‘bank’ has signed off, the buyer is ready, and we’re going to escrow. If he wants to go forward I need the deed… now. I take a notary to this meeting.
Do you simply tell the lender you’ve taken title? What if the lender requires the borrower’s signature on something relative to the debt obligation? And at what point do you get the prior owners to vacate?
I don’t tell the lender anything that I can possibly avoid telling them. Why complicate it? If they ask what my role is I simply state that I’m a middleman negotating the deal.
I have never had the lender ask for the buyer’s signature on anything other than the sales contract, and I would not agree to provide it on anything else. There is just way too much out there to allow ‘banks’ to throw out unrealistic expectations. The market value is this, the buyer can afford it, we’re ready to close and get you X amount of money. Yes or no.
I tell the homeowner to start packing when I leave after I get the deed. We are in escrow and they are outta there.