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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Perhaps you've found it.. Posted by Ward-CA- on April 10, 2003 at 9:47 PM In Reply to: looking for a residence posted by Leela on April 10, 2003 at 1:00 AM : Hi Ward, : Wow, thanks for the info at the LA Reic on Tues night. My husband and I bought a 2 bdrm townhouse in LA's westside last yr, but it is too too small now that we both work from home and share the 2nd bdrm as an office. : My immediate goal is to buy a 3bd house in a good school district and I thought I'd look into forclosures since it's a good way to get more house for your buck, esp on the westside of LA. : Well I was so excited after the workshop that I went home and looked up all the sources you gave. I subscribed to one of the foreclosure lists you recommended and found a property I think would suit our needs. : The auction is on April 21. What do you recommend I do? Do I search the title to see if it is free of liens then call the owner or do I go to the auction? I am not sure of what the next step is. I am also confused what all the abbreviations mean. : TAX VALUE 162,000 AMOUNT=48,000 TD1=520,000 and TD2=35,000. Should I offer to the owner? Should I go to the auction? What should I offer or bid up to? How do I figure out what to offer? : Any clarification and advice is greatly appreciated! =•=•=•=•=•=•=•=•=•=•=•= Leela, Well, you know the property isn’t free of liens because that’s why it’s on a foreclosure list. So, you need to know ALL the liens now before you can decide whether to approach the owner or go to the sale. If the property is way over encumbered then the owner has nothing to offer you, so your only choice would be to try your luck at the sale on the 21st. But if the property isn’t too encumbered then you’ll probably have better luck with the owner. So go to the county recorder’s office in Norwalk and research the title to the property. Look at the 10 page handout I distributed to the audience on Tuesday night. It has a tip sheet on researching the title record to property and should be of some use to you. Now with all the liens known, in order of priority, determine the owner’s equity. All that entails is to add up all the liens and then subtract that total from the current FMV (fair market value) of the property. Please ignore the tax value figure of $162,000. It’s absolutely meaningless in this fast moving market. If you know any title rep at 1st American Title ask him/her to give you the current FMV for the property. If that’s of no avail then call Phylis Rockower, the President of the REIC of L.A., for assistance. If that fails, then call me and I’ll pull in some favors to get it for you. Now with the FMV and all the liens in hand, go to page 10 in the handout and figure out the projected net equity in the property. Then divide that equity figure in half to see what a 50/50 deal on that property looks like. If it’s too small for you then pass, otherwise you need to arrange a face-to-face visit with the owner. This is an easy deal to do paperwork wise, since you don’t have to deal with CA Civil Code Section 1695 (because of your intent to move into the property and use it as your own residence). Hope this helps. Follow Ups: Re: Perhaps you've found it.. Fredp 2:46 PM, 04/15/03 (0) Re: clarification please.. Leela 0:24 AM, 04/11/03 (7) Go through the net equity worksheet... Ward-CA- 5:39 AM, 04/11/03 (6) Re: Go through the net equity worksheet... Leela 10:40 AM, 04/13/03 (1) Go again a few more times... Ward-CA- 5:37 PM, 04/13/03 (0) Can I get the handout?? Rick 8:04 PM, 04/11/03 (3) See - Foreclosures in a Nutshell - CD-ROM Ward-CA- 8:23 PM, 04/11/03 (2) Re: Handout + Audio Offered Through Store Cary 4:59 PM, 04/12/03 (1) Handout details Ward-CA- 7:20 AM, 04/14/03 (0) Re: Perhaps you've found it.. Leela 0:23 AM, 04/11/03 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : Hi Ward, : : Wow, thanks for the info at the LA Reic on Tues night. My husband and I bought a 2 bdrm townhouse in LA's westside last yr, but it is too too small now that we both work from home and share the 2nd bdrm as an office. : : My immediate goal is to buy a 3bd house in a good school district and I thought I'd look into forclosures since it's a good way to get more house for your buck, esp on the westside of LA. : : Well I was so excited after the workshop that I went home and looked up all the sources you gave. I subscribed to one of the foreclosure lists you recommended and found a property I think would suit our needs. : : The auction is on April 21. What do you recommend I do? Do I search the title to see if it is free of liens then call the owner or do I go to the auction? I am not sure of what the next step is. I am also confused what all the abbreviations mean. : : TAX VALUE 162,000 AMOUNT=48,000 TD1=520,000 and TD2=35,000. Should I offer to the owner? Should I go to the auction? What should I offer or bid up to? How do I figure out what to offer? : : Any clarification and advice is greatly appreciated! : =•=•=•=•=•=•=•=•=•=•=•= : Leela, : Well, you know the property isn’t free of liens because that’s why it’s on a foreclosure list. So, you need to know ALL the liens now before you can decide whether to approach the owner or go to the sale. : If the property is way over encumbered then the owner has nothing to offer you, so your only choice would be to try your luck at the sale on the 21st. But if the property isn’t too encumbered then you’ll probably have better luck with the owner. : So go to the county recorder’s office in Norwalk and research the title to the property. Look at the 10 page handout I distributed to the audience on Tuesday night. It has a tip sheet on researching the title record to property and should be of some use to you. : Now with all the liens known, in order of priority, determine the owner’s equity. All that entails is to add up all the liens and then subtract that total from the current FMV (fair market value) of the property. Please ignore the tax value figure of $162,000. It’s absolutely meaningless in this fast moving market. : If you know any title rep at 1st American Title ask him/her to give you the current FMV for the property. If that’s of no avail then call Phylis Rockower, the President of the REIC of L.A., for assistance. If that fails, then call me and I’ll pull in some favors to get it for you. : Now with the FMV and all the liens in hand, go to page 10 in the handout and figure out the projected net equity in the property. Then divide that equity figure in half to see what a 50/50 deal on that property looks like. If it’s too small for you then pass, otherwise you need to arrange a face-to-face visit with the owner. : This is an easy deal to do paperwork wise, since you don’t have to deal with CA Civil Code Section 1695 (because of your intent to move into the property and use it as your own residence). : 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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