California Cya
Hey there from California here I wanted to know if I was suppose to get the CYA letter for foreclosures signed the first time out to the seller or the second time since the equity purchase agreement says I have to wait 5 days before signing over the deed. Also should I have CYA for foreclosures notarized? Is there anything else important over here in Ca about the foreclosure process I should know? Thanx a lot everybody great forum here
Some states have enacted – or are considering enacting – specific legislations concerning professional dealings in foreclosures by Realtors® and investors (e.g., CA. Civ. Code §§2945-2945-11 re. Realtors®, and §§694-695-17 re. investor activity). In California, for example, Realtors® and real estate brokers (Foreclosure Consultants)—unless fully bonded –– are prohibited from professionally assisting in any real estate related transaction that would purport to save a mortgagor from foreclosure while leaving the debtor in the property.
Likewise, investors (Equity Purchasers) are prohibited from offering someone in foreclosure any scheme that would purport to “save” the mortgagor from such action while remaining in the property. In any of these categories, a careless action by an investor could result in the mortgagor’s (the mortgagor who is no longer in default) reversal of the entire transaction, costing the investor loss of the property, all monies spent, and even severe civil penalties. Warning! Be thoroughly familiar with these laws in your state before attempting to deal in foreclosures as an investment vehicle.
Only two things I would get notarized and they are the deed and limited power of attorney...
I need to brush up on my abbreviations
CYA = Cover your ass. And it is signed at contract, as it is part of my 21-page contract. I think not disclosing the 5-day rescission period is not a good business practice. Of the 234 deals last year I can only remember 1 bailing by electing to rescind.
There is the business rule of thumb that you can t lose what you don’t have.
EPA = Equity purchase agreement. Which includes the 5 business day notice. I have them sign that they received the required notice when they sign the contract as it is also past of my contract. It is important to prove that you followed the required notice provisions.
Buying a Foreclosure in California is as difficult as you want to make it and as easy as following the rules….
Important issue is not to use an agent or an employee as they are required to be a real estate licensee and the bond that is required is unattainable in California. If the buyer is a corporation then only those officers appointed to transact real estate on behalf of the corporation are capable of acting on behalf of the corporation.
Now all of this goes down the drain if you plan on living in the property… Food for thought
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