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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Equity Purchase by non-Investor Posted by Ward-CA- on June 23, 2002 at 5:16 AM In Reply to: Equity Purchase by non-Investor posted by Mary-CA on June 21, 2002 at 10:46 PM : Hi Ward, : I would like to approach a homeowner whose condo is in foreclosure, with an offer to purchase the equity. I want to use the property as my personal residence. I have read previous posts on the subject and have a few questions: : 1. Do I have to pay off the owner's existing loan in full - OR - do I bring the loan current and continue making payments - OR - get my own loan to pay off the pre-existing loan? : 2. Is there any legislation, such as CA Civil Code Section 1695, that applies to equity buyers who will be owner/occupant (i.e., non-investor)? : 3. Is there a different equity purchase agreement form that non-investors should use? Does the agreement protect me from other liens undisclosed by the owner? : 4. The NOD was just recorded 2 weeks ago, so the owner still has a little time on their side. Should I wait until I get close to the auction date or should I approach the owner soon? : 5. I am apprehensive about approaching the owner (especially since I need to figure out a way to get into the secured building). Have you ever had an owner reprimand you for showing up unannounced? I know you favor face-to-face interaction, but should I call and make an appointment first? : Thank you. =================== Mary, 1. Since you indicate you're going to keep the property for your own use rather than flip it then you need to give more thought on how to handle the existing financing. Your choice will depend on your willingness to qualify and assume the existing loan, or go through a refinance, or learn how to deftly sidestep the due-on-sale issue with a cooperative seller by the use of the title holding trust. 2. Section 1695 doesn't apply to pre-foreclosure buyers who intend to move into the premises and use it as their personal residence. Nor is there any other similar code section that a buyer/occupant, such as yourself, would have to comply with in California. 3. Whenever Section 1695 doesn't apply you are free to use an ordinary Offer To Purchase form and any normal seller requirements to disclose (liens, property condition, or anything else) is still required of the seller-in-foreclosure. 4. I'd contact the seller now rather than later since it looks like you might need the time to arrange for an assumption or refinance (which will take extra time). 5. Yes, I prefer the face-to-face approach since it's harder for a seller to dismiss me out of hand by just hanging up the phone. By going straight to the door I feel I have two opportunities to plead my case. If my face to face approach blows up in my face I can always retreat and try the phone approach a day or so later. So I suggest you use your ingenuity and get into the building by hook or crook and talk directly with the owner. Good luck. Follow Ups: hoodia Harry Juna 6:40 PM, 02/03/05 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : Hi Ward, : : I would like to approach a homeowner whose condo is in foreclosure, with an offer to purchase the equity. I want to use the property as my personal residence. I have read previous posts on the subject and have a few questions: : : 1. Do I have to pay off the owner's existing loan in full - OR - do I bring the loan current and continue making payments - OR - get my own loan to pay off the pre-existing loan? : : 2. Is there any legislation, such as CA Civil Code Section 1695, that applies to equity buyers who will be owner/occupant (i.e., non-investor)? : : 3. Is there a different equity purchase agreement form that non-investors should use? Does the agreement protect me from other liens undisclosed by the owner? : : 4. The NOD was just recorded 2 weeks ago, so the owner still has a little time on their side. Should I wait until I get close to the auction date or should I approach the owner soon? : : 5. I am apprehensive about approaching the owner (especially since I need to figure out a way to get into the secured building). Have you ever had an owner reprimand you for showing up unannounced? I know you favor face-to-face interaction, but should I call and make an appointment first? : : Thank you. : =================== : Mary, : 1. Since you indicate you're going to keep the property for your own use rather than flip it then you need to give more thought on how to handle the existing financing. Your choice will depend on your willingness to qualify and assume the existing loan, or go through a refinance, or learn how to deftly sidestep the due-on-sale issue with a cooperative seller by the use of the title holding trust. : 2. Section 1695 doesn't apply to pre-foreclosure buyers who intend to move into the premises and use it as their personal residence. Nor is there any other similar code section that a buyer/occupant, such as yourself, would have to comply with in California. : 3. Whenever Section 1695 doesn't apply you are free to use an ordinary Offer To Purchase form and any normal seller requirements to disclose (liens, property condition, or anything else) is still required of the seller-in-foreclosure. : 4. I'd contact the seller now rather than later since it looks like you might need the time to arrange for an assumption or refinance (which will take extra time). : 5. Yes, I prefer the face-to-face approach since it's harder for a seller to dismiss me out of hand by just hanging up the phone. By going straight to the door I feel I have two opportunities to plead my case. If my face to face approach blows up in my face I can always retreat and try the phone approach a day or so later. So I suggest you use your ingenuity and get into the building by hook or crook and talk directly with the owner. : : Good luck. 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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