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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Finalizing a pre-foreclosure deal Posted by Ward-CA- on October 09, 2003 at 12:29 AM In Reply to: Finalizing a pre-foreclosure deal posted by Rick on October 08, 2003 at 11:45 AM : Ward, : I'm about one week away from closing my sale of a property I bought "subject to" earlier this year. Here's the question... : Since the subject to loan had impounds, if there are any overages that the bank would "refund", would they not make out a check in the original owners name (rather than mine)? And if so, how would I convince the bank to make the check out to me? : Could I ask them to apply the funds to principal when they prepare a payoff statement? ( I have a feeling you'll say I should have put the property into a trust...unfortunately I did not.) : Thanks for all the great info you provide! : Rick =============== Rick, CA requires that the amount impounded follow, fairly closely, the actual amount necessary to pay the property taxes and insurance. So the balance in the account is probably not going to amount to more than $1,000 bucks. But, if you can go back to the original owner and have her sign a letter that's fashioned in the following manner, that will do the trick: To _________________: At the time my loan is paid off, please apply any remaining balance in my escrow account to reduce my loan payoff amout, and reflect said credit on your payoff letter. Thanks for your cooperation. Signed: ________________________ (original owner) Note: If the original owner consists of more than one party, get all said owners to sign the letter. Hope this helps. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Ward, : : I'm about one week away from closing my sale of a property I bought "subject to" earlier this year. Here's the question... : : Since the subject to loan had impounds, if there are any overages that the bank would "refund", would they not make out a check in the original owners name (rather than mine)? And if so, how would I convince the bank to make the check out to me? : : Could I ask them to apply the funds to principal when they prepare a payoff statement? ( I have a feeling you'll say I should have put the property into a trust...unfortunately I did not.) : : Thanks for all the great info you provide! : : Rick : =============== : Rick, : CA requires that the amount impounded follow, fairly closely, the actual amount necessary to pay the property taxes and insurance. So the balance in the account is probably not going to amount to more than $1,000 bucks. : But, if you can go back to the original owner and have her sign a letter that's fashioned in the following manner, that will do the trick: : To _________________: : At the time my loan is paid off, please apply any remaining balance in my escrow account to reduce my loan payoff amout, and reflect said credit on your payoff letter. : : Thanks for your cooperation. : Signed: ________________________ (original owner) : : Note: If the original owner consists of more than one party, get all said owners to sign the letter. : 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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