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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Walking the line in CA Posted by Ward-CA- on May 06, 2002 at 5:02 PM In Reply to: California Unconsciousable Advantage...4 years for previous owners to sue posted by Gina Hinds on May 04, 2002 at 8:23 AM : Hi: : We have a property under contract in CA and we have been having every type of problem in getting this property closed. I wonder if you could detail for everyone else on this board for us Californian's what steps you would do to avoid the following.. : *Unconsciouable advantage...the property is not under 70% of value but still this term is being thrown at us. : *4 Years for the previous owner of record that is losing the property that can come back and sue the investor : *Unruh Act : *You mentioned dealing with smaller title companies...do you look for someone similar to what VA Repos/Cal Vet does as they use Cimmaron Escrow? We have been trying to work with at least 8 major title companies and no one wants to take a risk because of all the lawsuits that have been filed against them?? : So in essence we have a transaction that we are doing "subject to", but can get no title insurance...so people may be thinking just do it without insurance. Well in our experience when we just started out 5 years ago we did this, until we had problems with title and had no one on our "team" to back us up... : So for CA protection would appreciate your steps and what exact contracts would you have them sign? An estoppel agreement? Equity Purchase Agreement... : I know that there have to be people that are working the pre-foreclosure market successfully in CA. Looking forward to hearing comments. =•=•=•=•=•=•=•=•=•=•= Gina, Unconscionable advantage, as far as foreclosures are concerned, really speaks to those lopsided equity splits where the equity seller gets $2,000 and the equity buyer gets 10 times that or more. To avoid such situations just split the net equity more evenly. Four years??? If you don’t violate Section 1695.6 or Section 1695.13 of the Civil Code then you won’t have any fear that your deals are susceptible to lawsuits and recession. The CA. Unruh Civil Rights Act deals primarily with housing discrimination on the basis of age, ancestry, color, disability, national origin, race, religion, sex, or sexual orientation rather than specifically applicable to foreclosures. We choose the title company with the lowest premium rate. Usually that’s Fidelity National. And we use a local, independent escrow company because of their eagerness to be of service. Your documentation package contain the Equity Purchase Contract, the Notice of Cancellation, and a Declaration of Uninsured Deed if you’re not using the benefit of escrow or title insurance. An Estoppel Agreement is used only if an owner-in-default is giving a lender a deed to their property in lieu of the lender starting a foreclosure. Hope this helps. Follow Ups: Re: Walking the line in CA Warren Priske 9:41 PM, 12/04/03 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : Hi: : : We have a property under contract in CA and we have been having every type of problem in getting this property closed. I wonder if you could detail for everyone else on this board for us Californian's what steps you would do to avoid the following.. : : *Unconsciouable advantage...the property is not under 70% of value but still this term is being thrown at us. : : *4 Years for the previous owner of record that is losing the property that can come back and sue the investor : : *Unruh Act : : *You mentioned dealing with smaller title companies...do you look for someone similar to what VA Repos/Cal Vet does as they use Cimmaron Escrow? We have been trying to work with at least 8 major title companies and no one wants to take a risk because of all the lawsuits that have been filed against them?? : : So in essence we have a transaction that we are doing "subject to", but can get no title insurance...so people may be thinking just do it without insurance. Well in our experience when we just started out 5 years ago we did this, until we had problems with title and had no one on our "team" to back us up... : : So for CA protection would appreciate your steps and what exact contracts would you have them sign? An estoppel agreement? Equity Purchase Agreement... : : I know that there have to be people that are working the pre-foreclosure market successfully in CA. Looking forward to hearing comments. : =•=•=•=•=•=•=•=•=•=•= : Gina, : Unconscionable advantage, as far as foreclosures are concerned, really speaks to those lopsided equity splits where the equity seller gets $2,000 and the equity buyer gets 10 times that or more. To avoid such situations just split the net equity more evenly. : Four years??? If you don’t violate Section 1695.6 or Section 1695.13 of the Civil Code then you won’t have any fear that your deals are susceptible to lawsuits and recession. : The CA. Unruh Civil Rights Act deals primarily with housing discrimination on the basis of age, ancestry, color, disability, national origin, race, religion, sex, or sexual orientation rather than specifically applicable to foreclosures. : We choose the title company with the lowest premium rate. Usually that’s Fidelity National. And we use a local, independent escrow company because of their eagerness to be of service. : Your documentation package contain the Equity Purchase Contract, the Notice of Cancellation, and a Declaration of Uninsured Deed if you’re not using the benefit of escrow or title insurance. : An Estoppel Agreement is used only if an owner-in-default is giving a lender a deed to their property in lieu of the lender starting a foreclosure. : Hope this helps. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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