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.
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...
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
Thanks to all for your very helpful advice.