Posted by Brian (UT) on December 29, 2005 at 22:17:19:
Calvin
Lots of investors have tried that and some got away with it, but remember if your only masking a flip the courts will side with the seller and will allow the two year recission period, along with damages, and fines.
It’s a lot cleaner and cheaper to act upfront as an investor and follow the rules. Of course, actually moving in, living there, and then selling the home in 24 months to take advantage of the $250,000/$500,000 exclusion on profit is nice too.
Working Foreclosures within the CA Civil Code - Posted by Oscar Guerrero
Posted by Oscar Guerrero on December 19, 2005 at 23:34:27:
Is there a civil code that a newbie investor must follow in order to work foreclosure deal and still be within the limits of the law. I spoke to an auctioneer today 12/19/05 at the steps of the Norwalk Court House and he stated that I should be familiar with the civil code since I was working foreclosure deals. One of the things he mentioned is that if one of the seller of a foreclosure ever, within two years, felt I forced the sale, then a court case could be made against me eventhough I didn’t coerce or used force. Any thoughts on this matter would be greatly appreciated.
Re: Working Foreclosures within the CA Civil Code - Posted by Brian (UT)
Posted by Brian (UT) on December 20, 2005 at 10:30:20:
Oscar
California probably has the strictest law in the nation for an investor buying a property in foreclosure. In trying to solve one problem, the people in charge created many others which they fail to correct year after year.
There are many sections of the California Codes you need to be familiar with. As an investor start with
California Civil Code Section 1695.
Re: Working Foreclosures within the CA Civil Code - Posted by Calvin
Posted by Calvin on December 26, 2005 at 14:17:24:
I find this interesting:
1695.1. The following definitions apply to this chapter:
(a) “Equity purchaser” means any person who acquires title to any residence in foreclosure, except a person who acquires such title as follows:
(1) For the purpose of using such property as a personal residence.
Basically, if you can afford it and are not looking for a quick flip … then you can move into the property for a few months (while you clean it up, do a few small repairs), turn on the utilities in your own name, etc, and completely avoid a lot of these issues. Or are the requirements for “personal residence” more stringent?
Not that I am trying to provide ways for unethical people to screw homeowners out of their equity … just ways for legitimate “equity purchasers” to not have a homeowner come crying back when they realize that they had to give up some of their equity (but forgot that it got them out of foreclosure/bankruptcy/etc).