Stumbling through first preforeclosure. - Posted by js-Indianapolis

Posted by Mike G on November 05, 2002 at 16:47:49:

I’ve been advised by a very experienced CRE investor to insert the following phrase for the purchase price in a short sale:

“whatever it takes to pay off all existing mortgages and liens subject to buyer’s approval”

i’m no pro though and haven’t actually done this yet.

just my 2 cents. others please chime in.

Stumbling through first preforeclosure. - Posted by js-Indianapolis

Posted by js-Indianapolis on November 05, 2002 at 13:19:22:

I finally got a couple owners that are currently in foreclosure to deed their properties to me. From our initial conversations, I did not expect this. Then, in the last 24 hours both called back and want to do this. I’m a little overwhelmed at this point.

I’ve think I’ve got everything I need to go, just a little shaky. First deal, or maybe deals. Property number one would need a shortsale for it to be worth much, property two has sufficient equity, but I would attempt a short sale nonetheless. The endgame is to either double close, or assign.

Here’s what I’m doing:
Both will deed me the property, which I plan to take via land trust. Both will be subject to the existing mortgage, obviously. No other liens or loans on either, both have gone through the bankruptcy.

So I’m getting a warranty deed, authorization to release information, limited power of attorney, and a purchase agreement. And of course, Joe Kaiser’s “The Best Darn Document on the Planet”, The Seller Disclosure Statement.

I guess I’m only questioning what selling price I would put under “Price”. I know the payoff, but will be attempting to lower it. What should I put there, as I am fairly certain it will change?

Also, if any of you who have done something similar want to chime in, and give me ANY advice, feel free. I don’t mind you letting me know if you think I’m going down the right path here.

To let you know, I am working with a broker who invests, and know my area well. I have comps to support these, and a title company that will do a double close. I’m not going it alone.

Thanks in advance for all the responses.