Escrow Agent Wants DOS Clause Disclosure

I have just relocated to Washington State, from Washington, DC. Looks like it only took my marketing 1 week to get me a qualified lead, which I am closing tomorrow.



I have a found an escrow co. that will close sub2 deals. However, the closer has asked me for a document to be signed by both the seller and myself that states that we understand what the DOS clause is, and what the ramifications of it are.



Does anyone have a boiler plate version of such a disclosure, that is investor friendly?



Thanks in advance,

Comments(6)

  • IBuyHousesInc6th March, 2006

    yep I sure do....email me and I will send it as it is a long doc.
    [addsig]

  • pmatheson16th March, 2006

    If the Home owner gives you a properly signed and Notarized Deed conveying all his Right, Title and Interest to you, You have now taken the property "Subject to" all the loans, liens & taxes. All of the Loans, Leins & taxes are still encumbering the Property. For you to convey or encumber the property further, you will have to (Probably) pay off anything the new lender demands.

  • bgrossnickle7th March, 2006

    What are the terms of your contract for deed. I believe they are typically like a traditional mortgage - at a certain percentage for a number of years. Then at the end of the CFD the CFD buyer has totally paid for the house and your sign over the deed to them. I do not think that you need a title company. But the bigger question is why are you concerned about what the CFD buyer does after he owns the house? There is something here that I am not understanding.

  • Nuetrino7th March, 2006

    Let me clarify,

    Say I sell on a 2 year CFD with a baloon due. This is intended to allow the buyer time to build their credit so they can refinance by the end of the 2 year CFD.

    When they do obtain financing, what does the rest of the transaction look like?

  • LeaseOptionKing7th March, 2006

    Lenders typically treat a CFD as a refi (far more lenders than will finance a L/O).
    [addsig]

  • JamesStreet7th March, 2006

    On my last refi the buyer (CFD) refi early (10 months) their mortgage company called a title company who called me for pay-off (balloon) and copy of contact. My contact states the CFD buyer pays all closing cost. We meet at the house I signed a few papers and my check was ready. Very easy however may be different for different banks.

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