Giving The Homeowner Money
how do you typically handle this process so you are covered?? i have always heard people just say "give them a bill of sale for the contents of the house." but nobody ever explains exactly how this takes place.
on my recent pre4 properties, i made an "agreement to sell" that was contingent upon the transfer of title to me or my assigns and doesn't become due until that time. i also add in that there is a ten day grace period before remittance is due. does anyone have a better way of doing this?? does anyone see a problem with this?? on these particular transactions, the homeowner is balking at the fact that he's not sure i'm going to pay him. all i've told them thus far is "take it or leave it."
I think that getting cash 10 days latter is excessive.
Set up an escrow account. Put the money into escrow. When they have signed all the documents and when they have left the house , they can go to the title company and pick up their cash.
how do you verify they have left the house?? what documents prove the escrow conditions have taken place??
also, assuming the seller were to agree to the 10 day thing, is there a problem with the transaction in and of itself??
Hi gotmike,
For some reason here, the homeowner has some trust issues. Even though he may not have very many alternatives, he may feel forced against the wall, and that is not a good way to move forward. If they have issues at the start, they will certainly have issues at the finish.
On handling this issue with short sales, I first get the bank to accept my proposal, I then run the title check and verify that it is clean. From there I meet the owner at Notary office and have them sign the deed.
With all of that done, I then give them the agreed upon amount and make then sign that bill of sale that they have recieved payment.
Best of Success!
BAMZ
gotcha, i think in part, his problem is that he is selling a total of 10 properties to me. we have a notary in the office that will go with me to get the deed, poa, etc. maybe that's a good next step.
BAMZ
What if the title is not clean, what do you do next?
Hi Nsor,
Well . . . . it depends what you mean. The title of course is not going to be "clean" because a pending foreclosure will show up on it. That of course is a given, and I always have the bank put in writing that they will immediately dismiss the foreclosure when they recieve the funds.
Other than that, it depends what is on the title. One time I had done a premilinary title search in advance, and when the SS was approved, I completed a full title search only to find that the water company had placed a lein on the property for $400+ dollars. Due to the amount that was at stake, I gladly paid off that lein and moved forward with the closing.
If the cloud is from a small item that you can take care, just do it. If it is a larger item, you can either try to negotiate with them, or you may even have to walk away from the deal. Be prepared to do so!
But as I said in my previous post, I dont give the seller any money until everything is done (on my part) and I meet with them to get the deed notorized.
Best of Success!
BAMZ
[ Edited by BAMZ on Date 11/26/2003 ]
BAMZ gives wise advice. I may give some seed money when they give me the signed deed (that's the gamble I'm willing to take-on occasions),
BUT they don't get the majority of funds until the the truck is ready to pull away from the diriveway heading for the title company where the cashiers check is waiting for them. .I call the title company and give the release signal. I really don't care about the house keys because before their exhaust fumes clear the property, I'm having the locksmith rekey the joint.