Question On Purchase Contract For Preforclosure

We have some rental property and are looking for methods to generate more investment money so I am trying to learn to purchase pre-forclosures and forclosures. I am looking at trying to negotiate my
first pre-forclosure (getting ready to knock on the owner's door) which I located in our local newspaper's legal notices.

Assuming our discussion(s) is (are) fruitful, is there any reason I shouldn't use a standard (California) real estate purchase contract through my realtor?
Are there any key clauses that you would recommend? I have read some books but would appreciate advise straight from those who have done it.
Thanks.

Comments(3)

  • reinatalie9th January, 2005

    You should definitely NOT use a standard realestate purchase contract when purchasing a property in pre-foreclosure in California. There are special forms that must include 5 day cancellation period, if they don't your purchase might be reversed.

    We deal with pre-foreclosure properties all the time, and what you put in your contract entirely depends on the situation at hand, there are just so many variables...

  • mcole10th January, 2005

    Greetings dburton,

    You may want to take a look at this link…

    http://www.leginfo.ca.gov:80/cgi-bin/waisgate?WAISdocID=36016025958+0+0+0&WAISaction=retrieve

    It’s the CA Civil Code Section 1695, which is good to get familiar with. It also has a lot of the exact language, font size, etc. that’s required when buying pre-foreclosures.

    HTH

  • dburton10th January, 2005

    Thanks to all for your very helpful advice.

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