Posted by Bronchick on September 01, 1999 at 09:59:14:
Correct, but property taxes are statutory liens that are ahead of you. Federal tax liens are behind you, but the IRS has a longer redemption period.
Suggestions on how to deal with the seller's attorney on a sandwitch lease deal - Posted by Tarun_md
Suggestions on how to deal with the seller’s attorney on a sandwitch lease deal - Posted by Tarun_md
Posted by Tarun_md on August 30, 1999 at 20:21:59:
Today I looked at a townhome(which is vacant and in good shape). The owner has to go overseas soon and doesn’t want to keep making payments on it. He agreed to a sandwitch lease deal and told me that he wants his attorney to look at the l/o contract. Like bronchick mentions, I didn’t just give him the contract(Bronchick’s contract). I told him that I want to be there when the attorney looks at it. And now we have set up an appointment tommorrow to meet with the attorney.
What points in Bronchick’s contract can I expect him to balk at and how should I answer the attorney’s objections. Any help would be greatly appreciated, especially from someone who has had to deal with an attorney in a sandwich lease deal.
Thanks
Tarun
Re: Suggestions on how to deal with the seller’s attorney on a sandwitch lease deal - Posted by Scott (AK)
Posted by Scott (AK) on August 31, 1999 at 11:35:52:
Tarun,
Good work …keep it up!
Like Bill said the Performance Mortgage seems to be the big one. I have used the explanation Bill says…touting that it allows me to be insured the most.
Another one they may balk at is the assignment. I feel it’s important to get the sellers approval. ( I did not on one and the seller was not to happy even though I had fully explained to them BEFORE they signed, sellers forget what was said after the problem is solved.) So now I only assign with sellers approval and if I get a Release of Liability.
Scott (AK)
Re: Suggestions on how to deal with the seller’s attorney on a sandwitch lease deal - Posted by Bronchick
Posted by Bronchick on August 31, 1999 at 09:22:24:
The only objection I can see he might make is with placing a performance mortgage on the property. You explain to the atty that it is for everyone’s benefit, since it will protect it from further encumbrances and give you an insurable position. Furthermore, his client will be out of the country, which makes things difficult to enforce, so you need that kind of protection.
Performance mortgage - Posted by chris (FL)
Posted by chris (FL) on August 31, 1999 at 21:47:07:
I just took my valaerian/melatonin a half hour ago & I’m about to pass out , so perhaps this is a goofy queston , but I 'll ask anyway. How does the performance mortgage protect a property from futher encumberance? My guess is that if/when the performance mortgage is foreclosed, the liens ( tax liens too ? ) behind will be wiped out - kind of like my mind right about now.