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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Just do the right thing.. Posted by Ward-CA- on April 24, 2003 at 7:23 AM In Reply to: 2 year right of recission Calif CC 1695.13 & 1695.14 posted by Frank on April 23, 2003 at 4:40 PM : I have been buying foreclosures on the Calif. South Coast Tri-county area the last 3 years and am a licensed Ca re broker acting as a principal at the sales. I fix the properties and resell. Lately the competition at the sales makes the bidders go up to 90 % of Fair Market Value which takes the fun and the financial reward away. : I'm looking into the pre-foreclosure business, have read a lot about it and do understand forms and 5 day recission rights etc.etc. : My main concern here is the 2 year right of recission by the seller (in distress?)as per Calif CC 1695.13 & 1695.14 if unconscionable advantage has been taken by the EP investor : Even legislature has not further defined unconscionable, is this 70 or 80% of fair market value?? In this litigues society we live in I'm worried about the possible exposure to lawsuits. I have also noticed that the professional players are not doing any pre-foreclosure deals. : I do understand you can not give me any legal advice, however I would appreciate to hear your opinion on this subject. : : Thanks in advance, Frank =•=•=•=•=•=•=•=•=•=•= Frank, I think that unconsionable advantage is doing something to someone that you would NOT want done to you. So just apply the golden rule when buying from owners in default. We haven’t had any problems doing a 50/50 split of the net equity with an owner after deducting from the current FMV (fair market value) of the propery all liens and expenses. For example, if their net equity amounts to $40,000 then we pay them $20,000 and we make $20,000. I think any judge or jury would hold that a 50/50 split of the net equity is conscionable. We haven’t experienced any litigation in this area, whereas I’m quite familiar with other pro’s who have such problems because they concocted very lopsided deals in their favor. If you want peace of mind, and the joy of sleeping soundly without any nagging worries, then just do the right thing. Hope this helps. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : I have been buying foreclosures on the Calif. South Coast Tri-county area the last 3 years and am a licensed Ca re broker acting as a principal at the sales. I fix the properties and resell. Lately the competition at the sales makes the bidders go up to 90 % of Fair Market Value which takes the fun and the financial reward away. : : I'm looking into the pre-foreclosure business, have read a lot about it and do understand forms and 5 day recission rights etc.etc. : : My main concern here is the 2 year right of recission by the seller (in distress?)as per Calif CC 1695.13 & 1695.14 if unconscionable advantage has been taken by the EP investor : : Even legislature has not further defined unconscionable, is this 70 or 80% of fair market value?? In this litigues society we live in I'm worried about the possible exposure to lawsuits. I have also noticed that the professional players are not doing any pre-foreclosure deals. : : I do understand you can not give me any legal advice, however I would appreciate to hear your opinion on this subject. : : : : Thanks in advance, Frank : =•=•=•=•=•=•=•=•=•=•= : Frank, : I think that unconsionable advantage is doing something to someone that you would NOT want done to you. So just apply the golden rule when buying from owners in default. : We haven’t had any problems doing a 50/50 split of the net equity with an owner after deducting from the current FMV (fair market value) of the propery all liens and expenses. : For example, if their net equity amounts to $40,000 then we pay them $20,000 and we make $20,000. I think any judge or jury would hold that a 50/50 split of the net equity is conscionable. : We haven’t experienced any litigation in this area, whereas I’m quite familiar with other pro’s who have such problems because they concocted very lopsided deals in their favor. : If you want peace of mind, and the joy of sleeping soundly without any nagging worries, then just do the right thing. : 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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