From my reading of the statutes (my own library plus online research) a renter does not have any right of redemption so that’s probably a dead end. I will probably get a quit claim and assignment of rights from the renter anyway just to be safe (I pretty much follow the old rather have it and not need it routine…drives my wife nuts…)
The statutes do specifically say though that the mortgage holder has the right to collect any rents during the redemption period. Rent is now at 825 a month which is very low for this area.
Also, not sure if it’s the same everywhere but if the property is redeemed, any liens or claims that were in place at the time of the sale are reinstated. Not sure if that’s an issue until I run title but could be.
Thanks much for the input. I’ll let you know how it turns out.
All the best, Lyal
Posted by James L on October 12, 2000 at 16:56:10:
Hi everybody!
I have a beautiful deal in the works and I feel like I’m in danger of losing it.
The seller is willing to provide the cash for the down payments on his 9 properties ( 16 units. )
The purchase price will be close to $530,000, and I make $200 per week at a restaurant. How can i use his money to pay the D/P to the lender???
It seems ridiculous that so much money could be lost in this deal because of the down payment seasoning requirements, etc.
I would appreciate your responses and advice.
Thank you.
JamesL
Not knowing any details makes it hard to offer any comments. It does sound like the conventional approach. Put up a cash down payment and get a new loan. There are approaches like owner financing and selling the note at closing to get the seller his cash. There are things like getting occupants of several of the properties to buy to generate some of the cash down. Then there is a rolling option type approach to attack them one at at time.
Re: Software available for finding market value? - Posted by rdlazo
Posted by rdlazo on September 23, 2005 at 22:18:54:
Sjay,
No software can do that.
Comparables are what appraisers, Realtors and
Mortgage co.s are using to establish RE values.
If you are working for a mortgage co
they should be telling you that most
mortgage co have connections
with Title co who subscribe from co’s
like (Data Quick)whos data base they access
for a fee then Title co share this with mortgage
co’s that order title work from them. Free
access to Data Quick data base by mortgage
co’s and Mortgage Co’s give title orders
from title co. You can also access property
profile, lot size, plot maps and recorded
info such as loans and tax liens on the properties.
It cannot be done by a software because ownership,
liens, lot size when subdivided and other info
about properties are constantly changing so
software alone cannot do that.
It take big organized national co to do
all of those info gathering I mentioned.
Good luck
I’d suggest that you try to get a better fix on the situation of the owner. If possible locate the owner, or his representative. You might talk with the former renter.
What you are trying to find out is if the owner is getting better or may be heading out feet first. Also, you want to know if there is a representative or relatives involved.
If he is recovering, he probably will redeem. If he goes the other way, he might not do so. If there are not relatives or representative, there may be nobody who will redeem. Then the bidder at the auction–could be you–could get the property. If there are relatives or the owner is recovering, you might try to arrange a pre-foreclosure purchase at somewhat less then market value, but giving the owner something more than he would get at the opening bid of the sheriff’s sale.
Even if the owner recovers and rescues the property or redeems it, you might be able to make a deal to buy it on terms that are favorable to you.
Yes, you can collect the rent, (or anyone else for that matter… that the tenant is willing to send a check to). The owner, or his representative could alays make a claim against you for this rent, but this seems less than likely here.
As long as you do not get yourself boxed into an agreement to sell something that you do not own or control, whereby the tenant understands that you don’t control it for 6 months out, and holds you harmless if all falls to pieces… and the tenant will forfeit rents paid to you, as an offset value of occupancy received.
Nothing else you should do to contact the owner, but if you knew of someone that had a durable POA for the owner, you could possibly buy the property from them. There is a risk of stirring up a hornets nest in doing so. You may just be better off at the auction, and then either attempt to contact an adminstrator of the owners affairs. They could then assign you his redemption rights, and shorten up your wait. Not really sure which way is best here, without knowing any of the details. There are several plays, depending upon who is controlling the owners affairs, and their attitudes.
JT,
I was hoping you’d respond. Thanks much.
As far as who is handling the owner’s affairs, I can’t really think of a good way to find out without poking that hornet’s nest. The renter (my buyer) had mentioned that he thought the owner might be in a nursing home. No basis for that assumption that I know of. My thought is that if someone were handling the affairs, the rent checks wouldn’t keep coming back. Someone would cash them. The previous renter offered to take the checks… sorry, not gonna happen my friend.
I think I’ll just wait and see if the sale happens. I’ll set up the agreement with my buyer to CMA on the 6 month redemption. I’ll collect the rent and just escrow it until I see if some party pooper redeems it.
Thanks for the input, Lyal
I recently assisted a friend who had bought a foreclosure at Sheriff Sale. He was very reluctant to move ahead on this vacant home, until he either knew more about the circumstances, or the redemption period lapsed. So, with a little gum-shoe detective work, (poking around where we didn’t belong, but doing no real harm), we discovered some mail from a nearby “Convelescent Home”. We went to the “Home” and inquired with the administrator, about Mr. Jones. Sure enough he was there, and in no shape to converse. We discussed the RE matter briefly, and the admistrator quickly told us what a problem that this RE creates for her… (We both looked at one another… thinking, we could sure solve that one for you).
Anyway, it seems that for Medicare funding, the “Nursing home” would be in a more clear-cut funding situation, without all these lingering patient assets. The admistrator was looking for a quick and easy solution. While we were unable to provide the solution in this instance, we did get our answer… Mr. Jones is not redeeming, unless you call checking in “upstairs”, redemption… but then that is the ultimate Redemption, having nothing to do with foreclosures.
JD makes a good point, and it is one that should be fully explored. It would be shameful to have an “Ace” in your deck like that one, and not throw it…
Best of luck on this case… and be sure to report back how it turns out.
JT,
Sorry…another of those brain cramps. Do you mean that (assuming the renter has any redemption rights) I should get a quit claim and / or assignment of redemption rights from the renter…a card to be played if someone else buys the place in that I could redeem it if necessary?
Thanks, Lyal
What I was intending to say was, if the Tenant did actually have any redemption rights, you could possibly acquire those rights through assignment, and then redeem (or cure) on behalf of the Tenant. This would give you the necessary control with vested rights to cure the default… if in fact this right of redemption of a Tenant existed.
At this moment we do not know if a Tenant can do so, in the State where the proeprty is located. I suggest determining if this is possible, and then proceed accordingly. My original point was, that if there was such a window for the Tenant to Redeem, it would be a shame to not capaitalize on that right, with the current circumstances. Why leave it open to a market auction, if you could control the property without subjecting yourself to that risk, and the many types of results that could occur.