Pre-NOD Notice Requirements.
I have been assured by a few reliable sources that pre-NOD notice requirements are “codified”. That is why -- I am further assured -- almost all lenders follow the 90 days pre-NOD procedure. But the sources could not remember whether I should be looking at California Civil Code or directives from HUD/FHA or Fannie Mae or Freddie Mac.
I have looked at California Civil Code 2924. But it seems to start from the filing of the Notice of Default forward. Where do I look to find the “notice requirements” that precede the filing of the NOD?
From my understanding it is completely legal. She is just assigning her contracts to new buyers, I think it may be illegal to collect an assignment fee, because she is not a licensed salesperson, but if it were to be called something different, it is legal. The HUD form actually has a space on it for contract assignements from my understanding. [ Edited by cserviss on Date 06/27/2005 ]
Selling a contract or more than the contract purchase price is totally legal - provided that the contract does not specifically say that it can not be assigned. The investors usually call is flipping or wholesaling.
There is no particular reason to use an LLC for this. I have wholesaled properties where the original contract had me personally as the buyer.
Brenda
The best way to determine ARV is by using Comps in the area. Hook up with a real etstate agent and have them run the recent sales (past 6moths) in the area of similar houses (sq ft., # of bedrooms, bathrooms, etc.). There are some websites that will allow you to look up recent home sales, but I would trust an opinion from someone working in the local market before a website. Prices can vary greatly even within a few miles of each other.
Assessed value is simply a number used by the county to base the annual property tax amount on. After Repaired Value (ARV) is a reasonable expectation of the market value of the property when it is fixed up and ready to go. Current value is a number usually below the ARV minus the cost of the repairs needed to get it fixed up. It is usually slightly below that number because people expect to get some discount for any sweat-equity thet they would have in getting the repairs done. Current value in all reality is the price that a potential buyer, and the seller agree is reasonable for the property.
Best of luck,
Jeff