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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Your nail-biter deal... Posted by Michaela-CA on July 18, 2010 at 3:15 PM In Reply to: Your nail-biter deal... posted by Rick Harmon on July 18, 2010 at 2:15 PM Hi, Rick, thank you for your response. I have to say, I was not aware of the 8am day deadline, only the 5 day one. I thought I read everything, but for some reason I must have skipped that part somehow. Anyway, it's not an actual deal that I'm working on. But with all the stuff that came up on the last one (the nail biter, when I called you a couple of times in a panic with several things), this was one of the issues. In order to pay it off in time, we had 5 days. Fortunately, we were able to postpone the sale for a week. So, having finally gotten paid on that one with a nice paycheck, I thought I'd take a look at others that are so close, that sellers are between a rock and a hard place. So, I thought I'd prepare myself and find out ahead of time, if there's something I can do in case we can't delay. This was the only issue that we dealt with on that last one, that I didn't have an answer for, yet. So, now I know ;-). As to pre-foreclosure - that may be a geographical thing: That's what we say in Georgia (pros and amateurs) for any property that is in foreclosure and that you're trying to work before it actually forecloses (not buying at the steps or as REO). Michaela : Hey Michaela - all prior posts are correct. Since you're not a regular poster here, many may not know you. You and I are friends and I still remember your little notes of encouragement (and healthy foed care package) when I was sick. : The trick is, as always, to have a way to safely control a short-fuse EPA deal, stay compliant, and make a "reasonable" profit. : As other posters directed you, read Cal CC 1695 et seq linked on left. It doesn't take too long. The key is to determine if your deal is subject to this law (i.e., owner-occ, 1-4 residential units in foreclosure. Your term 'pre-foreclosure' sent up the red flags for the old guard on this board as a term that seminar guru wannabees use, but not the pro's. I know you to be an experienced pro who generally works one primary niche and only occasionally find yourself amoung us other bottomfeeders. : If your purchase is subject to owner-occ seller status, then you'll need to do one of these three things. Either: : 1. Slow down the bus before you board it by delaying the sale long enough to perform satisfactory due diligence (perhaps a single phone call to the foreclosure trustee will result in a written sale delay long enough to get a bene demand/statement of condition. YOu might considre filing an emergency BK-13 petition for the debtor to buy some time, too; or : 2. Speed up YOUR due diligence to get enough comfort level to match your tolerance for risk and complete the deal on the day of sale; or : 3. Find another deal : If you have a system for getting the info you want in a timely manner, it is possible to engineer an equity purchase deal with minimal time to spare. It hekps if you're an adrenaline junkie and don't mind working squeaker deals. : On the other hand, there may be other plays available, including surplus funds and all kinds of exotic plays. : Not typical that you'd be working a simple, straight-forward equity purchase, tho. So what gives? : Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : Hi, Rick, : thank you for your response. I have to say, I was not aware of the 8am day deadline, only : the 5 day one. I thought I read everything, but for some reason : I must have skipped that part somehow. : Anyway, it's not an actual deal that I'm working on. But with all the stuff that came : up on the last one (the nail biter, when I called you a couple of times in a panic : with several things), this was one of the issues. In order to pay it : off in time, we had 5 days. Fortunately, we were able to postpone the : sale for a week. : So, having finally gotten paid on that one with a nice paycheck, : I thought I'd take a look at others that are so close, that sellers : are between a rock and a hard place. So, I thought I'd prepare myself : and find out ahead of time, if there's something I can do in case : we can't delay. This was the only issue that we dealt with on that : last one, that I didn't have an answer for, yet. : So, now I know ;-). : As to pre-foreclosure - that may be a geographical thing: That's : what we say in Georgia (pros and amateurs) for any property that : is in foreclosure and that you're trying to work before it actually : forecloses (not buying at the steps or as REO). : Michaela : : : Hey Michaela - all prior posts are correct. Since you're not a regular poster here, many may not know you. You and I are friends and I still remember your little notes of encouragement (and healthy foed care package) when I was sick. : : The trick is, as always, to have a way to safely control a short-fuse EPA deal, stay compliant, and make a "reasonable" profit. : : As other posters directed you, read Cal CC 1695 et seq linked on left. It doesn't take too long. The key is to determine if your deal is subject to this law (i.e., owner-occ, 1-4 residential units in foreclosure. Your term 'pre-foreclosure' sent up the red flags for the old guard on this board as a term that seminar guru wannabees use, but not the pro's. I know you to be an experienced pro who generally works one primary niche and only occasionally find yourself amoung us other bottomfeeders. : : If your purchase is subject to owner-occ seller status, then you'll need to do one of these three things. Either: : : 1. Slow down the bus before you board it by delaying the sale long enough to perform satisfactory due diligence (perhaps a single phone call to the foreclosure trustee will result in a written sale delay long enough to get a bene demand/statement of condition. YOu might considre filing an emergency BK-13 petition for the debtor to buy some time, too; or : : 2. Speed up YOUR due diligence to get enough comfort level to match your tolerance for risk and complete the deal on the day of sale; or : : 3. Find another deal : : If you have a system for getting the info you want in a timely manner, it is possible to engineer an equity purchase deal with minimal time to spare. It hekps if you're an adrenaline junkie and don't mind working squeaker deals. : : On the other hand, there may be other plays available, including surplus funds and all kinds of exotic plays. : : Not typical that you'd be working a simple, straight-forward equity purchase, tho. So what gives? : : [ 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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