How Are You Getting Paid Doing SS Flips?
1.How are you getting paid doing SS flips?
2.Are you using a land trust and then assigning beneficial interest?
2a. Is the end buyers bank saying anything about it being in a land trust? (from what i have been told is you must take it out of the trust)
3. Is it considered title fraud to use a land trust to flip the property?
I have been hear more and more that land trust cant be used. How do you make a large profit and do it legally? Can anyone spell it out for me and others that need the help.
1. Get the deed (dont record yet) submit your offer to the bank 3. Once bpo is done record your deed and list. 4. find your new buyer 5. get your release/payoff from the bank 6. Escrow coordinates a simultaneous close 7. You collect 100% of the margin
Must Haves
- Title company that will insure the policy with only disclosures to buyer and seller, NOT either lender.
-Escrow officer that has experience with simul closings
-Make sure your end buyer has an updated prelim before they submit their loan.
No land trust is needed. Seasoning is NOT an issue no matter what you might hear.
Sounds easy right? It is once you get it down. Good luck.
[ Edited by jackbenimble on Date 03/25/2008 ]
Jack, to further elaborate on your explanation. You mention to record the deed and the list the property after the BPO is done, but prior to SS approval from the bank?
If you then record the deed does the lender then not see that you are the new owner and the hardship is lost? I have heard if you record it, then the bank may not do a short because you are now the homeowner.
Additionally, if you record it then there would be no simultaneous close because you already own it and are just selling it. I think i misunderstood that part, so your clarification would be appreciated.
Are you just getting a regular warranty deed? What happens if you dont get the SS approve or dont find a new buyer in time?
Quote:
On 2008-03-30 14:41, Qwest wrote:
Jack, to further elaborate on your explanation. You mention to record the deed and the list the property after the BPO is done, but prior to SS approval from the bank?
If you then record the deed does the lender then not see that you are the new owner and the hardship is lost? I have heard if you record it, then the bank may not do a short because you are now the homeowner.
Additionally, if you record it then there would be no simultaneous close because you already own it and are just selling it. I think i misunderstood that part, so your clarification would be appreciated.
You need to seperate transactions otherwise you would have to disclose your profit on the HUD and to both lenders, killing the deal.
Jackbenimble!! man your right on top of things! lets do some deals!
Not sure how a law regulating leins on timber relates to this discussion- was that the correct link?
Chris
We are not talking about an insured policy are we?
In Florida, once a property has been deeded to a new owner, no encumberances from the previous owner will attach. Of course in some cases the deeding could be considered fraudulant and there could be a look back period (deeding right before a lawsuit, right before you apply for government benefits, etc). But for most real estate investing purposes, additional liens from a previous owner will not attach.
Also in FL, once the Les Pendens is filed, additional liens will not attach. I had thought about getting paid for my foreclosure services by filing a lien on the property. My title guy said that technically, my lien would not attach if an LP had already been filed.
Anyone here familiar with using a land trust in South Carolina & are there any unusual obstacles in doing so?
a memorandum is giving the buyer the terms at the time the property went under contract, so if a judgment is filed later, too bad for the judgment holder. at least here in nc since we are a racing state which mean he who files first has the superior position. that is why once an agreement is made people race down to the court house to file their agreements for this same protection.
The current tendency in the judiciary is to discourage racing to the courthouse- I just read a case in Utah where the state supreme court specifically rejected an arguement because that interpretation would encourage the "race to the courthouse".
I guess other states are different, but the trend is to discourage this.
Chris
so Chris how does this relate to the filing of a memorandum and its protection in that sort of state?
I use the option contract to facilitate and profit from a short sale. It is much cleaner than land trusts and assignment of beneficial intrest. We set up the transaction to go from A-B then B-C. "A" being the distressed seller "B" being me ( the investor), and "C" being the end buyer.
Jason
[ Edited by TheShortSalePro on Date 08/15/2008 ]