SS Question - Unique deal

[Mohegan]

Hello fellow Investors…

I have a Situation and Question to all the Gurus out there, maybe someone can give me a good answer for.

I have a lady who deeded her property away sub-to… However she was already behind in Taxes and Payments… The new Owner was supposed to pay all PITI and back payments…

This was not done as she said payments in arears and behind on taxes were not communicated to her when she took deed… so now its been over 5 mo. and no payment ahve been made…

As a Realtor I spoke to both parties to try to create a solution… my thing was i was gonna try to negotiate a Short sale with bank and market the property BMV.

Now when ive approached the deed holder/ new owner they dont want to list they just want to be rid of the property completely… they said they want basically deed the property to me…

This opens new questions,

1. is this adviseable…?
2. what happens now that foreclosure is underway, i fugure it’ll be at least a few months…

How would this affect me if i was to get the deed with taxes behind…?

The deal has no equity as is without SS - how cai i put this together and profit quickly if im the listing agent…

Would I be additionally sued for foreclosure process… because I have legal title.?

How should i take it and rent it out till foreclosure takes place…for whatever i can get ?

Negotiate with bank for a price say 2k deed in lieu of foreclosure…? They said no becuase its behind…

so how i could make profit here as investor…?

Is there a CYA letter i need to use… and disclosures…

what else is there for risk on my behalf im missing here… or any other options…?

What is the percentage or discount from FMV I should offer for short sales?
55% of FMV/ ARV ?

Advise is greatly appreciated…

Mohegan

[chateaumanagement]

@Mohegan post:1

Wow, a list of questions. This will be fun… :bobble

1. is this adviseable…? No. Why would you want to put that kind of headache in your name? Just on the off chance that you are held liable for something. Example: In the city of Cleveland Heights the person(s) whose name is on the deed is who is responsible for the property in the eyes of the city. If you must transfer deed, use the trust system. Transfer the deed from the current person into a trust. Then have yourself dubbed the trustee for the new trust. Now you control the property as you would if your name was on the deed but without the liability to your person. If the property was a commercial building, say an apartment building, you would want to look at creating an LLC that would own the building. The point is to keep a degree of separation from your personal liabilities.

2. what happens now that foreclosure is underway, i fugure it’ll be at least a few months… - Regardless of who’s name is on the deed, the foreclosure will move forward as it would at any other time. A foreclosure is against the mortgage note holder, not the deed holder.

3. How would this affect me if i was to get the deed with taxes behind…? - This depends on the state and/or county and/or city the property is in. You will need to check with the county tax office and ask them your level of liability. If I had to guess, I would say the current deed holder is who is responsible for the taxes, NOT the mortgage note holder.

4. The deal has no equity as is without SS - how cai i put this together and profit quickly if im the listing agent… - Successfully complete a short sale and get the payoff letters. Then sell the house quickly.

5. Would I be additionally sued for foreclosure process… because I have legal title.? - See my answer to question number 3.

6. How should i take it and rent it out till foreclosure takes place…for whatever i can get ? - I would be careful renting out a home in foreclosure. That can be construed as being legally questionable and possibly punishable. If the foreclosure has not yet been filed and there has been no NOD presented you would probably be ok. But again, I would check with the local laws. Better to be safe than sorry, eh? From the renters point of view I know I would be pretty pissed if I moved into a new place only to find out, from the bailiff, sheriff or bank that it was in foreclosure and I had to move.

7. Negotiate with bank for a price say 2k deed in lieu of foreclosure…? They said no becuase its behind… - This has nothing to do with who has the deed. This will depend on the same things a normal SS would have to deal with.

[b]8. so how i could make profit here as investor…? -
9. Is there a CYA letter i need to use… and disclosures… -
10. what else is there for risk on my behalf im missing here… or any other options…?
11. What is the percentage or discount from FMV I should offer for short sales?
55% of FMV/ ARV ?

To properly answer questions 8 to 11 there would need to be more information given surrounding the situation. But from what I can tell, other than the deed aspect this looks like it would be handled just like any other short sale situation.

[Mohegan]

Thanks for your detailed feed back…
I just need documents and knowledge of setting up trust…

and also could you elaborate on this statement…
" Successfully complete a short sale and get the payoff letters. Then sell the house quickly. "

How do i extract the info of what the bank will sell for with out putting my credit on the line…? Once i know this, the amount the bank will accept then i could sell quicker knowing they will accept and could advertise the property for this bargain short sale amount…

does this qestion make sense…?

Thanks for your contributions to my post…

Mohegan :biggrin