Where can I get a sample of a sub 2 contract so I can do most of the work and let a lawyer just look it over, instead of him doing it all. I thought this might save me a little money.
however long you agree to and think he can get financed in. remember if he doesnt get refinanced in the aloted time then the 20k is yours. try to get it for the shortest period possible but talk to a mortgage broker and see what they think as far as getting him financed. i just did a lease option for 6 months. if they dont get financed then that option money is non-refundable.
Thank you....so let me understand this. I can proceed with sending out my letters, etc. once I check the preforeclosure lists BUT must include an addendum to the purchase contract explaining SPECIFICALLY the process to the sellers in terms of the mortgage remaining in their name until resale, refi, etc. AND I must also include that they have 5/10 days to rethink their position on this. Of course, I will speak with an attorney but am i on the right track????
Yes, you are on the right track. There are some other requirements such as you must put your agreement (what services you are going to provide) in writing in plain english and you can not be paid until you have performed all of the services that you state that you will provide. Again, I am not an attorney. you should pull a copy of the bill as well as a copy of the plain language explanation. Different people have different interpretations of what the bill does and does not say must be done. That is why alot of folks are waiting until the final language of the bill becomes available in July.[ Edited by capitolinvestor on Date 06/15/2005 ]
This makes it sound like it might be safer to focus on other areas, either location or types of investing.
I hope this does not leave Maryland with a lot of houses that have that "foreclosed look", rather than the improved way they look after we rehab them!
This is very disturbing not only for our business, but also for the homeowners in the area & how it might ruin the values of their houses that are in the same neighborhood, if the foreclosed house does not get rehabbed.
I was told by someone in MD that the new law states that a "regular" investor cannot contact pre-foreclosure sellers. Only Real Estate Agents can. Is this true?
I didnt gather that from the teleconference. What I understood was that you could not be a Foreclosure "consultant" and a Foreclosure "purchaser".....meaning that if you have a bird dog that does the leg work for you and YOU do the purchasing.... you should be okay...I didnt take it that a real estate agent had to be involved. I have decided to try to get to my motivated seller BEFORE the preforeclosure process. I was advised that once info becomes public record, the foreclosure process has begun and the dreaded House Bill 761 is in effect. ITS JUST TOO MUCH TROUBLE FOR ME....and to make matters worse, i dont think ANYONE....attorneys or otherwise really know and understand the gist of this law.
Your comment about the 18 month rule is only partially correct. That only applies if there is a reconveyance agreement. No reconveyance, no 18 month rule.
How is everyone marketing with the new law? I have never dealt with preforeclosures but I would like to. What is considered "okay marketing". Does anyone know ?
Quote:
On 2005-07-05 23:15, MtZion21 wrote:
... Here is the MOST IMPORTANT part of the law. If you resell the house within 18 months you must give the owner of the property 82 per cent of your net profits.
You only need one deed to get a property subto. Why would you need more than one? If you refering to Trust deed/mortgage. That that is what you will be taking subject to, so it will stay the same.
Noone has advice or opinions on this one?
quinn
Easy keep 2k until refi.
or you could pay 2k right away to the bank.
You mean put it to the principal? Thats a good idea. Should I still make it a year or make it 16 or 18 months?
Thanks for the reponse REIKid
quinn
however long you agree to and think he can get financed in. remember if he doesnt get refinanced in the aloted time then the 20k is yours. try to get it for the shortest period possible but talk to a mortgage broker and see what they think as far as getting him financed. i just did a lease option for 6 months. if they dont get financed then that option money is non-refundable.
good luck.
Capital,
Thank you....so let me understand this. I can proceed with sending out my letters, etc. once I check the preforeclosure lists BUT must include an addendum to the purchase contract explaining SPECIFICALLY the process to the sellers in terms of the mortgage remaining in their name until resale, refi, etc. AND I must also include that they have 5/10 days to rethink their position on this. Of course, I will speak with an attorney but am i on the right track????
Wayne,
Yes, you are on the right track. There are some other requirements such as you must put your agreement (what services you are going to provide) in writing in plain english and you can not be paid until you have performed all of the services that you state that you will provide. Again, I am not an attorney. you should pull a copy of the bill as well as a copy of the plain language explanation. Different people have different interpretations of what the bill does and does not say must be done. That is why alot of folks are waiting until the final language of the bill becomes available in July.[ Edited by capitolinvestor on Date 06/15/2005 ]
This makes it sound like it might be safer to focus on other areas, either location or types of investing.
I hope this does not leave Maryland with a lot of houses that have that "foreclosed look", rather than the improved way they look after we rehab them!
This is very disturbing not only for our business, but also for the homeowners in the area & how it might ruin the values of their houses that are in the same neighborhood, if the foreclosed house does not get rehabbed.
I was told by someone in MD that the new law states that a "regular" investor cannot contact pre-foreclosure sellers. Only Real Estate Agents can. Is this true?
Hi,
I didnt gather that from the teleconference. What I understood was that you could not be a Foreclosure "consultant" and a Foreclosure "purchaser".....meaning that if you have a bird dog that does the leg work for you and YOU do the purchasing.... you should be okay...I didnt take it that a real estate agent had to be involved. I have decided to try to get to my motivated seller BEFORE the preforeclosure process. I was advised that once info becomes public record, the foreclosure process has begun and the dreaded House Bill 761 is in effect. ITS JUST TOO MUCH TROUBLE FOR ME....and to make matters worse, i dont think ANYONE....attorneys or otherwise really know and understand the gist of this law.
MtZion,
Your comment about the 18 month rule is only partially correct. That only applies if there is a reconveyance agreement. No reconveyance, no 18 month rule.
Bruce..
How is everyone marketing with the new law? I have never dealt with preforeclosures but I would like to. What is considered "okay marketing". Does anyone know ?
Quote:
On 2005-07-05 23:15, MtZion21 wrote:
... Here is the MOST IMPORTANT part of the law. If you resell the house within 18 months you must give the owner of the property 82 per cent of your net profits.
I hope this only applies to Pre-forclosure!?!
You only need one deed to get a property subto. Why would you need more than one? If you refering to Trust deed/mortgage. That that is what you will be taking subject to, so it will stay the same.
Just to clarify, I would be marketing to them for distressed property leads. Sorry if that was not clear