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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: 5 days clause, if auction is less than 5 days Posted by michaela-CA on July 18, 2010 at 3:39 PM In Reply to: Re: 5 days clause, if auction is less than 5 days posted by Ellis on July 18, 2010 at 9:01 AM Ellis, You're right in not jumping into it blindly. I don't have an actual deal lined up right now that poses this problem. But I recently 'fell' into one that we just finished. That's one of the problems ww had to deal with. We were able to postpone for a week. But I wanted to be prepared and know ahead of time what to do, if I was doing a similar one. I'm really a straight shooter, so the deal I did, I never bullsh*tted the seller in any way. It was full disclosure. he knew we were buying for profit. He had enough time to back out. And even at the closing table I told him that he could still back out, if he wanted to (he didn't want to). The day after we signed the contract I even told him that I'd give him an extra 20K within 12 months or when the property sold - whichever came first. That made him pretty happy. We used the Equity purchase contract and had him sign a CYA document at closing. So, he was fully aware of everything and I didn't play games. He received enough cash to start a new life (45K) and is in much better shape than if he'd kept the fixer-upper that was falling apart all around him. I learned a ton about California pre-foreclosure laws. More than I could have ever retained at any seminars - the school of life is the only school I seem to be able to learn things from ;-) Michaela : I understand the frustration. I would be cautious rushing to do a deal blinded by big equity. The key is to find ways to delay the trustee sale to address the risk of you losing your money if you cure the owners mortgage. Think about what reasons the lender might agree to postpone a sale. Make sure you read CC 1695 & understand the ramifications. : Foreclosure buying is a tricky beast that can bite you back hard if you don't know what you don't know. : Best of luck : : So, is this forum only for people that have been to Ward's courses? : : I don't want to be rude, but it doesn't help me to say that that's : : in Ward's training. : : If I have an awesome deal that can net me several hundred K, and : : I have the cash to cure, then why shouldn't I? I would think : : that makes it a lot cleaner transaction, then trying to do a sub 2. : : : I wouldn't cure anyones mortgage unless I could delay the sale. Ward goes over this in his training. Then proceed accordingly in compliance with CC 1695 : : : Ellis : : : : : : : I'm wondering what to do, if you come across a really hot pre-foreclosure and the seller is willing to let it go for a steal. : : : : BUT, the auction is less than 5 business days, and the contract gives him/her 5 business days to back out. : : : : How do you avoid the possibility that the seller let's you pay off the mortgage and then changes his mind the day after? Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : Ellis, : You're right in not jumping into it blindly. I don't have an actual : deal lined up right now that poses this problem. But I recently : 'fell' into one that we just finished. That's one of the problems : ww had to deal with. We were able to postpone for a week. But I : wanted to be prepared and know ahead of time what to do, if I was : doing a similar one. : I'm really a straight shooter, so the deal I did, I never bullsh*tted : the seller in any way. It was full disclosure. he knew we were : buying for profit. He had enough time to back out. And even at : the closing table I told him that he could still back out, if : he wanted to (he didn't want to). The day after we signed the : contract I even told him that I'd give him an extra 20K within : 12 months or when the property sold - whichever came first. That : made him pretty happy. We used the Equity purchase contract and : had him sign a CYA document at closing. : So, he was fully aware of everything and I didn't play games. : He received enough cash to start a new life (45K) and is : in much better shape than if he'd kept the fixer-upper that : was falling apart all around him. : I learned a ton about California pre-foreclosure laws. More than : I could have ever retained at any seminars - the school of life : is the only school I seem to be able to learn things from ;-) : Michaela : : I understand the frustration. I would be cautious rushing to do a deal blinded by big equity. The key is to find ways to delay the trustee sale to address the risk of you losing your money if you cure the owners mortgage. Think about what reasons the lender might agree to postpone a sale. Make sure you read CC 1695 & understand the ramifications. : : Foreclosure buying is a tricky beast that can bite you back hard if you don't know what you don't know. : : Best of luck : : : : So, is this forum only for people that have been to Ward's courses? : : : I don't want to be rude, but it doesn't help me to say that that's : : : in Ward's training. : : : If I have an awesome deal that can net me several hundred K, and : : : I have the cash to cure, then why shouldn't I? I would think : : : that makes it a lot cleaner transaction, then trying to do a sub 2. : : : : I wouldn't cure anyones mortgage unless I could delay the sale. Ward goes over this in his training. Then proceed accordingly in compliance with CC 1695 : : : : Ellis : : : : : : : : : I'm wondering what to do, if you come across a really hot pre-foreclosure and the seller is willing to let it go for a steal. : : : : : BUT, the auction is less than 5 business days, and the contract gives him/her 5 business days to back out. : : : : : How do you avoid the possibility that the seller let's you pay off the mortgage and then changes his mind the day after? [ 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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