AngelMG

Rich08, Did you ever get anything figured out on this? AngelMG

We have been in a lease with an option to buy for over two years. The seller filed bankruptcy about 9 months ago. We have continued to make our payments directly to the lenders bankruptcy dept. We would like to able to sell the home now and are wondering how this bankruptcy will effect closing. Thank you, AngelMG

Yes, I totally agree, Michael. My partner & I have really been working on our presentation. We have started getting referral letters from our sellers and tenant/buyers just as protocol now. Angela

Hey, Everybody! Have been having some great highs and disappointing lows lately. We had a L/O set up - were supposed to be doing the paperwork yesterday. And the ex-husband who is also on the title called to say he was not going to do it. His ex-wife who called us still wants to do it, but he is not cooperating, now. The only thing we have signed with them right now is a Purchase Agreement. Is this enough for us to try to flip it to a buyer that can get financing or should we try to do straight option paper work with them? Or how big of a problem would it be if we only did the paperwork with her for the L/O? This is a general problem that we have been having. When we have a delay in signing paperwork, either because we need to get notary service or because they want to talk to their attorney or other 3rd party we have been losing a lot of these deals. What can we do to get the deal now so that we don't lose some of these great deals?! Thanks, Angela

I'm considering doing a short sale on a property I had planned to take subject to. I got the short sale package from the bank and have a question about one thing that it says: Short Refinance should have a loan total value (LTV) of at least 80% Do you know what this means?

When we lease/option we ask the seller to add us to their insurance policy as additional insured. What should we tell the seller to say to their insurance company if they ask why they are doing this or what relationship we are to them? Angela

Mark, I recently asked an attorney about this. I am in Alabama and my attorney said the POA could be used for all documents accept the warranty deed. He said you would need to mail that to him and have him sign. I also want to ask you about how you handle the land trust situation. In our first subject to deal it has been a real issue getting all this trustee stuff straight. We have been having someone else named as trustee, other than ourselves, when we create the trust. Who do you have as Trustee on the Deed to Trustee that you record? Angela

Some more activity on this deal. Actually we already recorded our deed on this house. Can we still work on the short sale? What kind of documents do we need? We already have the authorization to release from the seller. Actually, one of the sellers, the husband called us today to say he wanted out of this deal, that he was going to borrow the money from his brother. We did not know what we were going to do at this point. Now, he has since called us back and said the deal is back on. But, what would, should we have done if they wanted to back out now. Also, we said we would try to get them about $3000 so that they could move out and get into an apartment. What would be the best way to handle this?

Hmmm, I really like that part. They will have a lien against the property, though, when my T/B goes to get financing, right? Or, an even better option in this case, what if I get my retail buyer? They will get financing and have to pay off the mortgages first and then I get the balance. How do I get that $12,900 or would I lose that in this case. Would I need to negotiate a short sale or release of lien with the mortgage company of the second mortgage first? We are going to try to get it changed to a personal loan for the sellers too.

Thanks for the feedback, Option 8 and Kennon. I like the idea of getting them to pay the second. It is a mortgage company on the 2nd so I don't know if they would convert it to a personal loan, but if we kept it as a 2nd how would I know if they would pay? And does it matter on a 2nd? What can the mortgage company really do if it doesn't get paid?

This is how our first subject 2 deal has played out. This is another person that called off our signs. She said she was 3 - 4 payments behind. I set up an appointment. She called and cancelled, saying her and her husband were going to try another avenue, to sue the insurance company. She called back about a week later and said this wasn't working either and they would still like us to buy their house. Here are the numbers. It is a 4/4 1/2, colonial house close to a historic area. It does not need much work. Market Value: $250,000 - $260,000 1st mortgage: 173,000 2nd mortgage: 12,900 7,800 to catch up the 1st mortgage We knew about the 1st mortgage and called the mortgage company to find out the amount needed to catch up the mortgage. When we had the title checked we found out about the 2nd. What can we do about the 2nd? Could we go ahead and record our deed and do a short sale on the 2nd? We are familiar with the concept of a short sale, but do not have the documents to do it. Is this an option to do the short sale if we are keeping the 1st in place. Our intentions are first to try to sell it outright fast. Second, to find a T/B and L/O. Foreclosure proceedings will begin on Nov. 21. Thanks.

Michael, We have made this mistake of leaving the documents with people. Sometimes it has worked out fine, they have still come back to us, but one person we think did exactly that and we should have known better because they were rental properties we were looking at with her.

This is how we got our first L/O deal. We put out 170 we buy houses signs around the city. We got tons of calls. Signs definitely work. We are going to end up getting 11 to 12 deals from those signs. So, the seller of this first house called from our sign. The owners were a couple that was living miles apart. The wife had already moved back to Illinois where they were from and where her daughter lived with her father, her ex-husband. The husband was still here working his job. They needed someone to take over their mortgage payments so they could afford a new house payment in Illinois. The wife was currently living with her parents. Once the husband gets to Illinois the wifes daughter will be able to come live with them. They were very motivated to get their house sold! We negotiated the deal with them the first night we looked at it, to take over the balance of their mortgage and their exact payment. They had one prospective buyer that they wanted to check with before they signed the paperwork. We let them do that and they called us a few days later. We signed the paperwork and got keys to the house. We had two group showings for the house. We found our buyers in the second showing, which was 10 days after we did the paperwork with the sellers. We celebrated when we got the house and celebrated when we got the buyers and we will continue to celebrate as we get more and more! Angela

You are so right, Michael. We should have given them the option to extend the option What do you say to these questions: Another issue we are questioning is if we should have a rent increase each year of 10%? And should we give a rent discount if they pay their rent early? Also, do we need to have a rental security deposit which is separate from the option deposit money? AngelMG

Should we be doing a Standard Purchase and Sale Agreement with the T/B along with the Option to Purchase Agreement and the Rental Agreement? AngelMG