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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Yes, with soome luck and persistence. Posted by Ward-CA- on May 11, 2003 at 10:31 PM In Reply to: Can I close a pre-foreclosure deal in the next 4 days? posted by Chris_CA on May 11, 2003 at 10:52 AM =•=•=•=•=•=•=•=•=•=•=•= : Background: : I received a call last night off my ad from a guy who's friend is in jail. His friend's house is in notice of default and the trustee sale is set for *this Thursday*. I don't have all of the information I need as the owner can't be reached in jail. I haven't been focusing on the pre-foreclosure business, so I don't know all that much about it. I'd appreciate any feedback. : The numbers: : 1. ARV of the house: $340,000 (from my 'quick-&-dirty' comps) : 2. "As is" appraisal: $331,000 (The friend provided this #) : 3. Outstanding balance on the 1st & 2nd (combined): $227,000 : 4. Amount in arrears: friend says about 15k-20k, but doesn't have an exact amount. : 4. Current LTV: 68% (if the appraisal is correct) : 5. Fix-up: 15k-20k : 6. Price: The owner *wants* $50k cash. It's not a deal at that price, but I'm not worried about that right now. Given the time frame of the sale, my plan would be to give him a little walking money (get-out-of jail money?) and take over the payments if the numbers make sense. : My questions: : 1. Is this deal worth pursuing given the time frame and the fact that the owner is in jail? : 2. Has anyone worked a deal with an incarcerated owner? i.e. How do you speak with them, get power of attorney, signatures, etc? : 3. Is there any way to postpone the sale at this late date? : Thanks, : Chris ===================== Chris, Well, first off you don't have any problems with Civil Code Section 1695. It doesn't apply since it's not owner-occupied property with the owner in jail. But it would help you immensely if you could deal with someone holding the owner's recorded power of attorney. Jails often have personnel that are notaries. If the inmate has a good jail record he might be entitled to execute a notarized power of attorney to someone he trusts. Usually not just anyone can call the jail and talk with any inmate. You generally have to be on an approved list. So find out who has an established phone privilege and see if they will cooperate to be your emissary about this deal. Have you checked to see if anyone else is on title? If so then you need to work with them also. See if they will agree to filing an emergency petition in bankruptcy. That will buy you about 30 days to put the deal together. That goes the same for the incarcerated owner. Hope this helps. Follow Ups: Re: A lingering doubt. Jim V 8:29 PM, 05/12/03 (1) Removing doubts... Ward-CA- 10:21 AM, 05/13/03 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : =•=•=•=•=•=•=•=•=•=•=•= : : Background: : : I received a call last night off my ad from a guy who's friend is in jail. His friend's house is in notice of default and the trustee sale is set for *this Thursday*. I don't have all of the information I need as the owner can't be reached in jail. I haven't been focusing on the pre-foreclosure business, so I don't know all that much about it. I'd appreciate any feedback. : : The numbers: : : 1. ARV of the house: $340,000 (from my 'quick-&-dirty' comps) : : 2. "As is" appraisal: $331,000 (The friend provided this #) : : 3. Outstanding balance on the 1st & 2nd (combined): $227,000 : : 4. Amount in arrears: friend says about 15k-20k, but doesn't have an exact amount. : : 4. Current LTV: 68% (if the appraisal is correct) : : 5. Fix-up: 15k-20k : : 6. Price: The owner *wants* $50k cash. It's not a deal at that price, but I'm not worried about that right now. Given the time frame of the sale, my plan would be to give him a little walking money (get-out-of jail money?) and take over the payments if the numbers make sense. : : My questions: : : 1. Is this deal worth pursuing given the time frame and the fact that the owner is in jail? : : 2. Has anyone worked a deal with an incarcerated owner? i.e. How do you speak with them, get power of attorney, signatures, etc? : : 3. Is there any way to postpone the sale at this late date? : : Thanks, : : Chris : ===================== : Chris, : Well, first off you don't have any problems with Civil Code Section 1695. It doesn't apply since it's not owner-occupied property with the owner in jail. : But it would help you immensely if you could deal with someone holding the owner's recorded power of attorney. : Jails often have personnel that are notaries. If the inmate has a good jail record he might be entitled to execute a notarized power of attorney to someone he trusts. : Usually not just anyone can call the jail and talk with any inmate. You generally have to be on an approved list. So find out who has an established phone privilege and see if they will cooperate to be your emissary about this deal. : Have you checked to see if anyone else is on title? If so then you need to work with them also. See if they will agree to filing an emergency petition in bankruptcy. That will buy you about 30 days to put the deal together. That goes the same for the incarcerated owner. : 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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