Skyland Properties

In many states the owner gets to retain their homestead in a Ch 7, as long as there is not a significant amount equity (I'm pretty sure the threshold varies by state).

You can sign a simple affidavit stating you received the upfront option fee and provide that along with a copy of the transfer of agreements document.

Unfortunately, I don't have another house that will fit this TB's needs, but I guarantee you I'll be trying hard to find one! As for getting an attorney involved, should I use my own and have it be from my company? It seems like that will be putting me right in the middle of this, and I don't think it's going to do much with this guy, he's a wee bit stubborn...

Steve, unfortunately, the way I see the lawsuits being filed, is the TB files suit against me for Non-Performance of contract, I then have to file suit again Homeowner to make whole the TB and what would have been my commission on the deal. I will be trying to work out the deal amicably on the front end, but if not, I'll be trying to team up with the TB against the Homeowner. I don't know about that. If all three signed the assignment, you're released, so the seller didn't perform. But I don't think it sounds like the deal was assigned? So, the seller never agreed to the assignment... You don't take a commission. You are selling the deal and collecting a fee. Worse case you give the fee back, or pressure the seller to perform via legal action. Steve, the rental agreement, option and assignment of contract have all been signed by the homeowner. I have not yet assigned the contract to the TB, because there is additional 1k due at then end of this week. Should I hurry up and sign it over ;-)

I'm posting this so some of the newbies understand some of the challenges involved in CAs, they aren't all peaches 'n cream. So in the last 7 days: I visited a homeowner and we had agreed on terms and went over the docs. He wanted to sleep on it, but was very sure he wanted to move forward with a CA. Two days later, he found out from his employer that they'll be relocating him again and he doesn't want to sell his current house now. Another homeowner I visited about a month ago; we agreed on terms and went over contracts, but he is going through a divorce, so he had to get his ex to QC the deed on the property or sign on the CA. He e-mailed me 3 days ago to let me know that he and the ex can't agree on anything right now and will be holding off on selling the house. A homeowner I had contracted and was advertising for about 7 weeks for a CA (I've got a couple of tenant-buyers that are quite interested, but getting me additional info on credit application) just let me know he signed a lease with a couple last Friday. And the kicker, the CA that is supposed to have the TB move in a week into the new house, the homeowner is now backing out! Yuck!

Steve, unfortunately, the way I see the lawsuits being filed, is the TB files suit against me for Non-Performance of contract, I then have to file suit again Homeowner to make whole the TB and what would have been my commission on the deal. I will be trying to work out the deal amicably on the front end, but if not, I'll be trying to team up with the TB against the Homeowner. @Chris - You are right about not letting it bother you too much! I let it consume me for about 2 hours, then I was able to let it roll off my back. I'll keep you all updated on this one...

Mr. Homeowner has certainly been told this (except for the lawsuit portion, which I will be bringing up next..) His response is, "well it's either my hardship or the tenant-buyers, and I'm not ready to move yet, so that's how it is." And yes, the contracts have most certainly been signed.

Ok, a deal I'm working on just took a nose dive... Here's the scenario, looking for any input before I act. I signed with the homeowner six weeks ago to do a CA. Found a tenant-buyer earlier this month who put down 4k with another 1k due at the end of this month. The tenant-buyer put in his notice at his current place (quite a fight to get him out early too) and is supposed to be out by Jan 31st. The homeowner hasn't been able to find a place and needs extra time (or he may be backing out on the whole deal and using this as the excuse). Uh oh! What are you thoughts on how to approach?

If you contact their customer service and explain that you are looking for a specific house and that you aren't a spammer, they will sometimes allow another 10-20 e-mails through. Try and communicate with cust svc through their instant messaging system, it's slightly less aggravating....

I give simple advice around credit scores, disputing items on report, how to run a free report (annualcreditreport.com), and then put them in contact with a mtg broker I like. From there it's up to the mtg broker to earn his commission and the homebuyer to get on the stick.

Good thought Steve. I'll pitch my response this way to the family; they can keep the property as an income producing asset (by leasing to me) either with our without a mtg on the property. If they have to extinguish the old debt, then they can refinance once I've taken over the property.

By proprietary, I mean copyrighted. They can't use the documents without your expressed written consent. Anytime you give home sellers a copy of your contracts, there's a chance they could decide to try to lease option the house themselves and use your contracts, thereby cutting you out of the deal.

Here are my answers to the questions, take with a grain of salt... Can I get a mortgage if I have one on this house? -Typically for a Fannie Mae / Freddie Mac conforming loan, they will take 75% of the gross rents and apply that to the borrowers income to rebalance their DTI ratio. And I always tell them to verify with their mtg broker or bank to get additional clarification. What's the difference if I manage my property or you do? -Are you doing a CA or SLO? CA, make it clear that once you close on the deal, you are out. I tell people, that the burden is on myself and the homeseller, that we pick someone that will take care of the property. -SLO, I tell them that I do this for a living and will be buying the house, I guarantee that it will be taken care of. How do I know that you're not just stealing my house? -Explain to them how simple it is, you are leasing the property, with an option to buy it. Two. Simple. Contracts. Also, they can run it by their attorney if they want, but they have to understand that out contracts are proprietary info! I make this point very clear, so they don't try to get sneaky and it builds credibility in our contracts. Do you have any references? -You should get references from bosses, friends, neighbors if you don't have any closed deal refs yet.

I'm currently working on buying a house for cash that is in probate, but besides that, what other options can I offer someone who is currently trying to liquidate a home to settle the estate? Here is a response I heard back from a CA potential house. "We cannot sell on a lease purchase agreement. I am executor of my parent's estate and this is their home. I have to sell it outright and settle their estate." I'm really just looking for some feedback as to if these are worth pursuing. Obviously there is some motivation on their part, but terms flexibility seems like it will be pretty limited, especially if there are multiple heirs. Thoughts?

I don't usually notarize if I'm just doing a CA or lease optioning one of my own properties. If you are trying to protect your position though and plan to file the docs at your local courthouse, then you will most likely need them notarized and maybe quite a few other stipulations (i.e. certain margin widths on the paper, 8.5"x11", legal description of property).