Potential Deal Right In Front Of Me
I have a seller who cant make payments on his house anymore so its about go up for foreclosure auction on November 14th.
The balance on the house is 77k, has a appraisal value of 104k and houses in the area tend to go for 90k or more
I was thinking I could contact the lender and make a shortsale offer of 70k since the house needs a few minor repairs....However I did notice today that a few people are working on the house and cleaning up the yard and stuff so this may be taken care of.
What should I do from here, just let it go or try to cloud the title with a purchase and sale agreement with weasel clauses thrown in?
Why dont you make your offer $77k. The bank will not take 70k before an auction in 2 weeks, if the appraisal is above 90k.
Otherwise, you should just wait 2 wks and make your bid at the auction. Just cross your fingers that no one bids 80k.
Oh by the way, just forget about the clouding title thing. If the homeowner and/or bank doesnt have any business with you? or done you any harm. Why would you mess with their business transaction?
Good luck
"...try to cloud title..."
Boy does that smell of being illegal, especially when phrased so bluntly.
First determine if the deal is right for you. Do you even want this deal? If so, get the property under contract with nominal earnest money and then start a pot on every burner so to speak... start putting together a short sale package, start marketing as a wholesale deal to other investors/retail buyers, etc. whichever one pans out first should be strongly considered.
Until you get a committment from the seller in writing (purchase contract), you have no claim to the property so clouding title would be wrong.
A few observations: 1. This house may have already been sold; 2. Is this worth $13K?; 3. A two week period for a short sale?
"...I did notice today that a few people are working on the house and cleaning up the yard and stuff..." This house may have already been sold. When I see repair activity on a property a week or two from the courthouse sale, many times it is a new owner who just took title. What I do is strike up a conversation and (politely) try to figure out what is going on, who they are, etc.
I do not know what area you are from, but $77K purchase (with unidentified impairments) on a house with $90K comps is not that compelling. Even with a $104K appraisal, how much are you going to wholesale this for?
Can you get a short sale closed in to weeks? Sounds unlikely.
Today is 11/15. Was the courthouse sale held yesterday (Friday?) and what was the outcome?
Our Title Search guy seems to have no problem getting into the confidential files which contain Divorce and Probate info. We get copies of that data all the time from him.
Maybe you need to develop a relationship with a title search Pro.
[addsig]
Phlly is the county seat. Get to the county building ask for the clerk of the courts-she/he will direct you to the right place. Easier way is to find the local law journal (newspaper). Most all filings are in that paper. What lawyers read in the morning. Here in Chicago costs are heavy $300-400 a year. But has everything you need-Probate, divorce, tax delq, tax liens, NOD, and foreclosures.
it is a matter of public records - be consistent, if neccessary speak with a supervisor.
Thanks for all of the information, especially info about the law journal which I was not aware of. I have called my local City Hall, and have gone into almost physical confilcts with local city officials to obtain this information, especially with a certain local security guard. I will keep you all posted.
You are over thinking the process. The agent can benefit by finding the deal because sometime somehow they have to get paid. If you sign a listing agreement with an agent you are agreeing to pay her a certain commission. this will have to be worked out between you the agent and the new buyer. Everybody has to understand that there is a certain commission set aside for the agent whether that comes out of your potential profit for your buyer agrees to pay it. Its about looking at a deal and understanding how you can make it a win win situation for everybody. Dont over think things like i did when i first got started because it will drive you insane!!!
-Brian
The seller pays the listing agents commission. If the buyer is represented by an agent then the comm. is split by the two agents.
another variable is the type of agent you are working with... i am an agent that invests and i provide investors i work with wholesale properties that i come across from networking with other local investors; these are generally properties not listed in the MLS and i am generally compensated via an assignment fee or in certain cases i do a limited listing agreement that pays me for bringing the buyer/investor. the key is to find a savvy agent who understands the business of investing, as opposed to just a person who has passed the test and has a license; there is a marked difference.....