Posted by JoeKaiser on December 20, 2000 at 02:01:37:
I can’t figure out this “asking for the deed” talk. You’re buying a house, not a deed. A deed is just the paperwork that makes it happen. You don’t ask for a deed, you ask for the darn house. That would be like looking at cars and when you find the one you like, asking the fellow if you can buy his title.
Your deal isn’t thin, it’s upsidedown. Pretty tough to make it happen.
The first isn’t going to discount. Why would they? They’re likely to get paid in full. Lenders generally discount to about what they anticipate they can recoup from the property, and maybe a little less to avoid the hassles.
Bought a lot with a mobile on it. They owe $38k on the mobile and I told the lender to come and get it (my favorite opening negotiation position . . . use it all the time). Lender told me they figure it costs them $17k to repo a mobile. Hmmmmm. We settled on a sales price of $5k, which was a little less than the lender would have netted had they actually sent someone out there with a hook. That made sense to them.
Whatever you do, it has to make good financial sense to the lender in order for them to sign off. I suspect your play here is getting the 2nd to walk away. They’re likely to get zip, so $5k is way too much. I’m guessing it can be had for a grand. Otherwise, this just gets written off.
If you’ve done your homework and really want to take a shot here, send the lender assignment paperwork along with a check for $500. Tell them you’re looking to clear title and the check is a “token” payment that they may cash upon returning the signed off paperwork to you. It’s a lot tougher for them to say “no” when they’ve got a check in their hands.
Posted by Stew(NE) on December 19, 2000 at 23:54:08:
I need an example of asking for the deed on a pre-foreclosure.
Do you just use a form like the assignment of deed form on legalwiz?
I really would like to hear from someone who has actually had the property deeded to them before the auction and to give me some general guidelines.
I have an out-of-state owner who has left a decent property with a first of 100K + about 6K in late payments and a second of 40K. The FMV is 125K. I know it’s thin. I will not do this deal unless I can talk the first down to about 80K and the second down to 5K. I am looking to learn the process
Here is a thought for you. If the second won’t deal right away-wait. A day or two before the auction buy the note dirt cheap. Record it before the auction. When the property gets sold you can go to court and get a judgement against the maker of the note for the face value. I suspect you can collect more than you paid for the note. In some cases(probably not this case)you can collected overages from the auction. Check if there are any redemption periods in your state.
As Joe says the key to doing this deal(if you can) is to discount the 2nd. A word of caution-this place may need carpet and paint. Include that cost as needed.
When you ask about an “assignment of deed” form at Bill’s site you may be speaking of the assignment of deed of trust. Totally separate item from a deed. Because of that wording I suspect my above comments are beyond you present level. However, someone else may get the concept that there are other ways to make money than buying, renting, selling.
Posted by JDenney on December 20, 2000 at 02:18:32:
Stew,
The deed (ownership) can only be transfered to you by the owner up to the point of him losing it at the sheriff sale, at that time the court (judge) will order the sheriff to deed the property to the highest bidder by way of a sheriff deed and the current owner will lose any claim to the property. If you can find the owner before the sale he could deed you the property with a standard waranty deed. Then you would be the owner, but he would still be liable on the mortgages untill you negotiated them down and pay them off.DON’T TELL THE BANKS YOU ALREADY HAVE THE DEED! Ownership of the property (deed holder) and liability on the mortgage (promisory note) are two totally separate and unrelated things. The bank can not get the deed (ownership) unless it forecloses its mortgage (to collect on the promisory note) or the owner willfully signs it over. GOOD LUCK, JEFF