Posted by Bill H on May 19, 2003 at 17:49:51:
Jim,
Did not insult anyone. I simply do not understand anyone in the foreclosure/investment business not knowing the basic language of the industry.
---------->bill
Can someone explain what this means? - Posted by LeonNC
Posted by LeonNC on May 18, 2003 at 16:02:23:
In my contract used to purchase, paragraph #4 “Prorations” states:
“Seller will assign to Buyer, at no cost to Buyer, Seller’s escrow account and property hazard insurance policy, and/or any refunds which may issue, in lieu of proration of all taxes, association fees, monthly hazard insurance premiums, and monthly mortgage insurance premiums as of the date of closing.”
What exactly does the “in lieu of” the other things mentioned?
I guess if there is no escrow account then the items will be prorated? What if they have an escow account and still are 10 years behind on taxes. Is there anyway I can lose with the way this is worded?
Thank-you,
Leon
Re: Years and years ago… - Posted by Jim V
Posted by Jim V on May 19, 2003 at 23:51:03:
in a city not too far away(15 minutes with no traffic).
There was a newly licensed fledgling loan officer who began his lending career. He was assigned to a desk amongst the loan smurfs that commonly inhabit lending offices. It was a friendly, supportive environment where the loan officer learned the basics. But, the lending officer noted that the top performer in the office didn’t spend “friendly” time with the smurfs. After asking intelligent questions of the top producer, spending late hours working on deals and perhaps a shared six-pack now and again, the lending officer learned that the top producer believed “You have to know every possible thing that can go wrong and address it before it’s a major problem”.
Knowing the details, and the possible ramifications of the details, is what makes a lender or an investor “stand out”.
I guess my question would be “How much time, effort and money are you willing to expend to know the exact answer to your question”?
Or, are you satisfied with friendly answers?
Re: Can someone explain what this means? - Posted by Bill H
Posted by Bill H on May 18, 2003 at 19:26:11:
Looks to me like you are penny wise and pound foolish. You probably found a purchase contract on the Internet and figured that is good enough for me
If so why are you using a contract that you do not understand?
Looks like a contract of adhesion to me that any good real estate attorney would love to sue you about.
------>bill
if you are the seller… - Posted by David Krulac
Posted by David Krulac on May 18, 2003 at 18:19:05:
you lose your escrow. But if you have any question consult with a good local real estate attorney
Re: Can someone explain what this means? - Posted by LeonNC
Posted by LeonNC on May 19, 2003 at 02:11:27:
Bill,
I don’t believe we’ve met before. Do you have anything constructive to say? If not, you should probably stay on the porch. Calling someone you’ve never met a fool is not how we conduct ourselves here.
I’m sure with all your knowledge you too at least read your contracts before you use them. And I’ll bet you even read it before you let your attorney review it so that you might know what questions to ask.
This is a sort of mastermind group for some of us. Something pops into mind and it gets posted. I’ve learned a lot from the people here over the years. We don’t come here to take lip. If that’s all you have to offer then please don’t respond to my posts. I don’t think I’ll be missing anything.
Happy Investing,
Leon
Leon
Re: Can someone explain what this means? - Posted by Brent_IL
Posted by Brent_IL on May 18, 2003 at 21:36:47:
I agree that it isn’t wise to use a contract that isn’t understood.
My contract transfers all of that, and more, to the buyer at no charge and expressly includes it in the Total Sale Price. It?s in lieu of nothing.
I think the adhesion defense is primarily used to intimidate buyers to back down. When items are negotiated line-by-line, and acknowledged by the seller, it’s difficult to prove that it was take-it-or-leave it.
I’m not a lawyer, but I know that the sellers I engage would prefer to exercise their option to cancel than to take a chance on litigation. If it’s good enough for insurance companies, it’s good enough for me.
Re: Can someone explain what this means? - Posted by Jim Guinn
Posted by Jim Guinn on May 18, 2003 at 21:27:57:
Maybe he hasn’t used the contract yet, and is performing this thing investors do called “due diligence.”
I suggest you use the same due diligence process before posting insults.
Jim
Re: Can someone explain what this means? - Posted by Bill H
Posted by Bill H on May 19, 2003 at 17:47:43:
Apparently I hit a nerve Leon. No,we have not met before. I simply could not understand someone in the foreclosure/investment business not knowing the very basic language of the industry.
------>bill