Pre-foreclosure Deal Contract
Hi-
I am putting together a contract to use in pre-foreclosure deals and am wondering if there are certain disclosures that have to (legally) be in this type of contract?
If there are, and I don't want to hire an atty. to tell me what these disclosures are, what are my resources for figuring it out on my own and putting them in my contract?
I would be using the contract in CA.
not sure about CA but i believe that your state has a very liberal right of redemption period. i would research your state's foreclosure statutes for a starter. my suggestion is, if you aren't going to hire an attorney to walk you through this than it is up to you to educate yourself rather than rely on the advice of others who may or may not know what they are
talking about.
J
iline:
NICE to meet you....
However you'd Better WATCH YOUR BACKSIDE!!!
CA does NOT PLAY nor ALLOW the unitiated to monkey around PFL and foreclosure owners WITHOUT READING YOU THE RIOT ACT about taking UNCONSCIONABLE ADVATNAGE of these poor souls whom are losing there homes!!!
The State of CA has the MOST-INVESTOR DISADVANTAGED LAWS and further RESTRICTS Foreclosure Speculators, Foreclosure Consulting (e.i PRIVATE Investors) to give owners Complete Disclosures almost stricter that they would have Loan Brokers and RE Agents to do.
To make it plain...the detest us a lowly breed of Creatins who seek to Swoop down upon unsuspecting homeowners like Vultures over half -deadbest in the wilderness.
Should you plan on targeting PFLs and Foreclosures in CA than I'd suggest you do a GOOGLE of:
"Foreclosure Consulting Law California"
This should retrieve t he Statutes/Codes relative to your intent to invest and or deal in transacts with distressed homeowners.
I've invested in the CA market from time to time ove the last 14 years and have found the challenge (RE: State Laws) to be of NO REAL ROADBLOCK to me..but I had an RE ATTY that helps me to review my structure and legality.
The indicator of Unconscionable advantage is a transaction or offer at "Less than Fair Mtk Value"
...This sale could be reversed by a Judge if contested (not just in CA) and the PFL Owner could get title back with NO OBLIGATION to reimburse You for your paying their arrears payments, taxes, and/or any repairs made by you...
Whether you've taken it subject to or taken over the balance etc. and the WORST of ALL...
Sales Lease back to the PFL Owner to make them sell to you UNDER MKT and Pay an INFLATED re-Purchase Price!!! That will definitely be looked upon as USURIOUS in CA and most other States.
You could even run the risk of JAIL TIME!!!
So IMHO research your proposed paperwork, contracts, etc. you intend to use and get a FIRM GRIP on the CA Foreclosure Statutes relative to Investors...then MAKE THAT MONEY Partner...cus CALI is Moi CALIENTE` Right Now!!! (esp LA)
I Love this REI Biz!!!
Best of Success to You!
Derrick Ali
Derrick Ali-
thanks alot for your reply. very helpful. one thing I found interesting was that in my search I found 2 different codes dealing w/foreclosures. one dealt with "foreclosure consultants", which cannot receive any interest in property, and the other was in regards to "equity purchasers", which if I am understanding, are supposed to be licensed real estate agents or brokers. don't know where this leaves guys like me. i do see what you mean about CA not messing around - gotta be slicker than they are!
Iline:
CA does NOT exempt you from receiving Equitable Interest as a coBeneficiary of a Living Trust (Land Trust).
Have the seller to place the property into one and workout a Mutually Agreed Value(MAV).
Direct the Trustee (this could be you) to sell the home (title in trust's name) proceeds and details regarding who has what interest in it are PRIVATE MATTERS not enforceable by CA to compell the Trustee to REVEAL!
NICE--LEGAL--and Better than Slick!
Best of Success to You!
Derrick Ali