All Forum Posts by: Allison Escovedo

Hey Mark, no we didn't end up closing on the 4-unit. If you aren't familar with Taft, it's an oil/ag community primarily dominated by the seasonal ag industry. Most people in the oil industry live in Bakersfield.

Thanks everyone for all the tips and advice! 

The owner of the house is deeding us the property. We are going to have to make the first current ($6k) and pay off the taxes ($5k).

There are squatters in the house now, but because the house has a code violation and is deemed uninhabitable, we are hoping to be able to get them out quick with a call to the sheriff.

Our first order of business is remedying the code violation. It is due to a converted garage - a 14x14' piece was added without a permit 20 years ago- and the code officer just discovered it in 2017. Worst case scenario, we will have to tear down the 14x14 piece and turn it back into a garage. Best case scenario, the county lets us keep the extra square footage and grandfathers the garage in. The reason it is not "up to code" has to do with the setback from the property line. We have placed many calls into the building inspection office, so trying to clarify that up. If anyone has experience with this, please let us know!

From comps, without the added sq footage from the garage, it looks like we could get $120k for the house if we can get the code violation remedied. We haven't been inside the house, so we're unsure the condition of the interior, but $120k is assuming the interior condition is poor. If the interior condition is great, we could potentially get $150k (although this is unlikely).

So for the financials, we've put in $60k originally + $11k for taxes and to make the first current. The first will be $23k against the house. And we owe the lawyer $2k for his counsel during this process.

If we can get through the code violation quickly and efficiently, we may end up making a tiny bit of money on this property. I will keep everyone updated! Thanks again for all your help and if there's anything you think we need to be aware of that we're missing, please let us know!

Thank you Jay. So, we are owed $75,000 on the second. The first is owed $30,000. The taxes are owed $6,000. So we are entitled to bid up to $75,000 using our credit bid (no cash outlay) but if we bid over $75,000 we will be required to put the cash up front. Did I understand you correctly? 

Thank you for the comment! If we bid our own principle do we have to pay that out of pocket? I'm unfamiliar with this strategy. 

Hey everyone- an update and needing some advice.

So we've initiated foreclosure by filing a notice of default with our lawyer. It takes 3 months before the trustee sale and we're in that waiting period.

We just heard from the owner of the home who told us the 1st is foreclosing. The 1st is for about $30k. The owner wants to deed us the home.

Here are my concerns: obviously deeding us the home is in the best interest of the owner...why is that? What is he going to get out of it that he wouldn't get if foreclosure happened? 

Do we want the home? The home is deemed inhabitable due to the unpermitted garage addition, but there are currently tenants living there illegally. 

Fixed up, the home is estimated to be worth $130-140k, but we aren't sure of the condition of the inside at this point. 

What do we need to be aware of? We're obviously going to talk with our lawyer too. 

Thanks for the help Dylan! We plan to definitely see more than one attorney to get a quote. The house is in Bakersfield, but I so appreciate the offer to stop by. Thanks for the heads up and fingers crossed this goes smoothly and gets resolved quickly! 

 Thanks Dylan! He doesn't live in the house, but we're going to drive by later this week (we aren't local) to check it out. We've tried everything to get back in touch, even calling his son, but no response! 

We just had an initial consult with a lawyer who said it would be around $2500-$3000 to initiate foreclosure. Does that seem reasonable ? 

 Thanks David. Appreciate the response. Hoping leveling works! 

 Yes, definitely going to do a letter.

This loan was to the owner of the property (who is another investor), who owed about $25k on a $130k valued property. We loaned him $60k with the intention of receiving $75k within 6 months. The $25k 1st position mortgage is still there, and from what we can tell, he's paying it. But he hasn't paid taxes this year, but it's California, so the taxes wouldn't cause foreclosure for a year or two more.

Thanks Corby. This is what we are hoping for!