What A Mess!
Below is a record of events that transpired on a foreclosure that I was following. My question to all takers is, what exactly did the third party bidder buy?
RECORD OF EVENTS
1. On January 15, 1999 a grant deed was recorded and John became owner of real property located in Los Angeles.
2. On May 1, 2005 John irrevocably granted 95% legal and equitable title to his real property, to Ted as trustee of his (John’s) trust. Even though notarized, the trust transfer grant deed conveying said real property wasn’t recorded.
3. On October 5, 2005 after entering a normal real estate transaction and for valuable consideration, John grant deeded his real property to Bill.
4. On the same day, as security for the performance of obligations created in a promissory note that he had signed, Bill subsequently executed a deed of trust in favor of ABC Bank.
5. On October 31, 2005 both the grant deed from John to Bill and the deed of trust from Bill to ABC bank were recorded.
6. On July 18, 2006 Ted as trustee of John’s trust recorded the trust transfer grant deed he received from John back on May 1, 2005.
7. On August 11, 2006 Bill recorded a quitclaim deed, conveying all right, title, interest and claim to the real property to Ted as trustee of John’s trust, making sure to attach a copy of John’s earlier recorded trust transfer grant deed to Ted as trustee of his trust as an exhibit.
8. On November 1, 2006 which was several months after Bill had defaulted on his obligations and after ABC Bank complied with all statutory laws regarding California’s non-judicial foreclosure process, the real property was sold to a successful third party bidder at the auction.
9. On November 10, 2006, the successful third party bidder recorded his trustee’s deed upon sale and title was perfected.
10. On November 16, 2006 for valuable consideration, Ted as trustee of John’s trust, recorded a document which purported to grant Jim a 20 year option to buy John’s interest in the real property.
11. On November 16, 2006 Ted as trustee of John’s trust, executed then subsequently recorded a deed of trust in favor of Jim as security for the performance of the obligations created in he and Jim’s option agreement.
My question again, what exactly did the third party bidder buy?
yes, I would say the third party bought the property, but very clever manuevering prior by all the other parties, I takes a lawyer to mess things up that much. I would be interested in the final outcome.
I think you are talking about "Bird Dog"
The "Bird Dog" is the person who finds potential deals and sells the information to other investors. Many people get started as a Bird Dog for other investors because it does not take any cash or prior knowledge to look for distressed properties. The Bird Dog finds a property for sale, gathers the necessary information, and then provides this information to investors for a fee. The fee will vary depending on the price of the property and the profit potential.
The Bird Dog can usually expect to make five hundred to one thousand dollars each time he provides information that leads to a purchase by another investor.
The above is a general description, not sure about CA, but I would imagine, charge whatever the market will bear
Sounds like you are doing more than "Bird Dog"
I have no idea what the max charge would be for your service. Maybe you could work out a percentage of the deal.
thanks for responding to my question, i guess i will try the percentage approach on my next deal! once again thanks!