Should I Run Away Fast!
An associate of mines approached me with the following:
He helped somenoe who was behind a couple of months payments by paying the mortgage current and getting the seller to quit claim the property to him for $5,000.00. He did not file the quitclaim and He has made improvements to the property and now the property is in pre-foreclosure. He has asked me to purchase the property and quitclaim it back to him, offering me the same as the as the "seller" + 2 moths payments at closing. I would be responsible for the mortgage.
My question is, was it legal for him not to file the quitclaim? Seller can close and legally owe him anything. The guy wants the money back that he put into the property.
My gut tells me to run away as far as I can from this guy. Opportunity is that I can go directly to seller.
Any advice would be appreciated.
The guy is an idiot and I would run, not walk away.
C-
Sounds like your "associate" had no clue what he was doing and trying to put a deal together by the seat of his pants. It might be a good deal but without the numbers (FMV, payoff, etc) there is no way to tell whether you should walk, sprint, or run from the thing.
on your mark....get set..
I agree with everone else. This person was an idiot not to file the quit claim. He was an idiot to fix up someone else's home. He is an idiot not to make sure that his investment isn't paid current...
So many mistakes, so little time to fix them. Unless this property is significantly undervalued from MV, this deal makes absolutely no sense. Even then, it is questionable...
Quote:
On 2003-11-17 10:52, Determined7 wrote:
He did not file the quitclaim and He has made improvements to the property and now the property is in pre-foreclosure. He has asked me to purchase the property and quitclaim it back to him, offering me the same as the as the "seller" + 2 moths payments at closing. I would be responsible for the mortgage.
Have you "seen" the quitclaim that the owner signed for this guy? This all sounds fishy. Why would he expect you to purchase the property, pay the mortgage and quitclaim the deed back to him? You'd still be responsible for the loan. Sounds fishy. Yeah, I'd put on my Nikes.
Thanks everyone for your responses! I've already ran....Just wanted to let other investors know that there are people out there with all kind of offers so make sure whatever you invest in is in your best interest.
This forum is great!