My Land , But Not Mine
Ok, here is the situation I bought a lot little over 2 years ago at sheriff’s auction, I got sheriff deed for the lot. Last week I got it under contract to sell but the buyers lawyer called me and told me that the city did not convey the whole.18 acres to me but they conveyed half, he said that he found that when he was doing a title search to get clear title but he found that I have no clear title because the city. did not convey the whole thing, he was saying that maybe I should try to get a corrective deed but what is the possibility of that since it was a sheriffs deed which is quitclaim deed, (note: I thought sheriff deed dose not guarantee if there is any other liens on the property but should not at least guarantee what they sold me (the lot that was advertised during the sale) is what it is?
Help please before I go to the court house tomorrow.
Did your prop have a basement and the comps not?
why have you lost the property? If i were you i would have put it into a trust real quick and sold it myself and kept the difference. Did you have the "Seller" list the property? you wouldnt have even had to short-sale it.
i think that should have been an easy 20k or so in your pocket. You should have put it into the trust right before you listed so you had ownership. you could have even affored to give the seller a little cash.
mayeb they will be happy because they can prove it and pay less taxes
yeah i think you should have taken title through trust before listing it also, but just not recording the beneficial interest in it.
there was no way that your realtor friend wouldve helped you out by giving you the heads up, before letting the seller know that there was offers? might be unethical but its becaus of you that he/she will get a commision.
i would atleast expect to get a small percentage of the sale from either the realtor or the seller, i mean you were the reason this house got listed and got sold.[ Edited by ZinOrganization on Date 03/06/2005 ]
Zin knows
Thanks to all who have replied.
I agree about not worrying about it. It took 2 days to get over it. Besides the Homewner is so happy, she baked me 24 cookies. Chocolate Chip, my favorite.
It is dissapointing at first, but you learn from your mistakes My dissapointment was over pretty quick once I got my next lead.
nathan, i will try to enlighten you.
he stated that the 2nd mortgage holder was willing to negotiate immedietly, and the first would be willing after 30 days of it being listed. at this point you know there willing to play ball or atleast the 2nd is.
if he was planning on quick turning it, he couldve had the buyer sign title over to him as trustee of the trust and assign him the beneficial interest. now he wouldnt record the beneficial interest so know one would know that title has changed except him and the seller. he could then proceed to market it himself because hes the trustee. if for some reason the short wasnt accepted or he couldnt find a buyer and the property gets foreclosed on, his name is not on the loan. they will foreclose on the mortgagor and might name the trustee in the suit but chances are nothing will happen to the trustee because he didnt personally guarantee any loan. now i would caution you to explain this to the seller up front, that if you dont find a buyer that the house could still go into foreclosure, some people dont like this method others do. my partner and i have done it twice successfully in the last three deals we have done. never had one get foreclosed on. you can also put in your purchase contract that its subject to both shorts being accepted, so you are not liable if they dont get accepted.
again its a judment call, and you should definetly talk to a qualified attorney who knows trusts.
p.s. i also dont think you should negotiate a short without getting some sort of interest or title in the property. what happens if you spend a month negotiating shorts with both mortgagees, they both get accepted. but all of a sudden when its time to close the seller doesnt want to sell anymore. they say sorry but thanks for negotiating the shorts for me, now i will sell it myself. just a thought.[ Edited by ZinOrganization on Date 03/09/2005 ]
i also like to get title asap, because i dont like going back and forth explaining to the sellers that the banks willing to negotiate so now i have to put the house into a trust for seasoning issues yada yada. its much easier to just tell the seller upfront that "your going to take title and try to sell the house, and if it doesnt sell or the bank wont budge then it may still get foreclosed on". give them half the money for signing over title and the other half when you find a serious buyer so they can move out. or all of it upfront so then can move out right then, if your worried about that. this way the seller walks away a couple grand richer then they were. if they were just going to let it foreclose then they wouldnt have made anything. and if there is any equity at all and the short doesnt get accepted well atleast you make a little, if it does get accepted its just a bonous to a deal that was thin to begin with. and if it doesnt sell and gets foreclosed on, well atleast you disclosed that upfront and you shouldnt be liable(dont quote me on that) its not like your promising to make up back payments or anything like that, your basically telling them that you have to find a buyer in order to save there credit and stop the foreclosure.
man i should be getting paid for this info. lol[ Edited by ZinOrganization on Date 03/09/2005 ]
yes, it takes a while to get the hand of all the trust and title stuff and loop holes that allow it all to happen. im by no means an expert and still learning as i go, myself. send me a pm with your email and i will get in touch with you, or my email may be available on my profile.
good day.
also i suggest researching your state foreclosure laws, either by quizing an attorney or some other form of research. here in CT if we get them early enough from our bandit signs, then we have around three months or longer to negotiate a short and find a buyer or find a buyer or close our selves. however you want to do it.
Think of it this way. I would rather lose out on a good deal, then get stuck with a bad one.
Learn and adjust and move on. The thing to take aways from this is that you tried and are doing something.
valid point
Ok, someone enlighten me now... just a vocabulary matter:
When you say "subject to" are you refering to assignment of the P&S??
And again thanks fot the patience with newbies![ Edited by jon_realtor on Date 03/11/2005 ]
Just to let you all know who have replied to my orignal post, the appraisel came back at $110,000.00.
Wingnut, I understand your frustration,knowing what may be driving up the prices in Arizona has only one answer. Refuges from California.
Jeff, Not really sure what the whole properties for sale thing is. Probaly something the webmeister did.
I am never too busy sit down and chat. I attend the Auctions at the court house steps a couple of days per week. Just let me know.