I am new to this biz and could really use some experienced help. Any assistance is greatly appreciated!
How do you get the landtrust and at an affordable price? Am I correct to assume that the quitclaim or grant deed should transfer the title to the trust?
I am working on a property in San Diego, CA. It is currently setup to be taken over subject to. How do I handle insuring the property? Current owner is covered until 9-10-06.
1st: $344k
2nd: $100k
CMA: $535k-$585k
Fixups: Curb Appeal-landscaping, clean out trash, convert one “room” back into a closet to change back to 4/2ba instead of 3/2ba.
The intention is to do a quick lipstick and resell before summer is over. This may not be enough room for profit, obviously not 20%. It could take more time to sell. Would you go for it anyways? If not, how would you go about presenting the second with a short sale?
head to www.foreclosureforum.com for more info on Calif foreclosures; also read the code section regarding laws about EPA and preforeclosure buying. Section 1695 is particularly important.
Thanks. I am aware of those laws and code. The seller is not yet in foreclosure and has been given the cancellation forms anyways with the EPA. So all is clean on this end.
I asked the homeowner to contact the mortgage co’s to see about getting a short sale form. From my understanding, most of them have that. This way, for now I do not have to deal with a release form or power of attorney. The owner is willing to work on it.
In the mean time, has anyone gone for a deal without 15-20% profit and the market being weak like it is?
If by not in foreclosure you mean she hasn’t had the NOD filed yet then you’re in good shape. The magic question is, “Will you sell me your house for what you owe?” If the answer is no then I’d walk. You’re already looking at 83% of LTV which is cutting your profit razor thin.
The market here in San Diego has definitely slowed and reversed in some areas (still up in others). You need to get the house ready and sold in 30-45 days to make it profitable keeping in mind that each month you hold on to it the monthly loan payments are eating away at your profit.
There’s other ways to buy it but the simpler is usually the best. Give the owner $500-1,000 to walk and leave the loans in their name otherwise they’re really looking for a owner-occupant which you aren’t, and they should just list in the MLS and wait the obligatory 3-6 months all the while making the payments.
The EPA is prepared and signed to take over pmts subject to, so there is no expectation from the owners for money beyond that.
Since you are in the San Diego area, how confident do you feel about being able to sell within 3 months? This property is in the better part of Spring Valley, up on a hill. It is on a 1/2 acre lot.
Would you list it with an agent or just mls? If just mls, would you only pay the realtor that brings the buyer? Then if only paying the agent that brings the buyer, how do I be sure all is done right on my end? I am considering an agent that I have spoken with and to arrange higher interest dependent up on the rate of sale. If it sells w/in 30-45 days, higher commission and less as time goes on. He seems willing to arrange that.
