All Forum Posts by: Account Closed

Hi Ben,

I'd call Woods Cove, LLC and ask more questions about who they are and what involvement they have with the property. Maybe they can give you more information about the property.

Or call the county assessor's office and ask to speak with the person handling tax auction/sheriff's sale. Maybe they can give you more insight about who are the actual owners.

It's also possible that the city inspector and court reporter were mistaken, because it sounds like $4K is owed in taxes in the name of the new trust. Obtaining a copy of the sheriff's sale auction list should give you more information about what back taxes are owed.

Hope this helps!

Chris, you gave me a great idea! Could you perhaps strike up a deal with another short sale investor to negotiate a lower price on the property? I would think it wouldn't be illegal (if you're unrelated to the investor) to offer he or she 50% of the profits on the successful sale of the house! What do you think? Let me know.

Matthew, what's BP? I've never heard of them before. Could you perhaps send me their link? There's only one REIA group in Southern Oregon, and it's a dead end. The woman heading the organization hasn't even put together her first deal, and lost everything. All her members were beginners too, and didn't even know the basics about real estate. Needless to say, I don't know anyone here who can help me in my business. Please send me any information about this organization. Thanks!

--Yvette

Hi Smitnlit,

That really stinks! I was afraid of the state saying something like that! Boy my state is hanging me royally! Are there any laws impeding short sales in your state?

Do you know if this law applies to homes purchased at foreclosure auctions? Please let me know.

--Yvette

Hi Smitnlit,

Thanks for the tip! I would've over looked that small detail, had you not made a mention of it. However, since I'm going to be negotiating with the bank and communicating with the sellers, this shouldn't be a problem. I will make a mention of this in my argument with the title company.

--Yvette

Hi Equity Examiner,

I looked up all three definitions, and here's what I found. The definitions are taken directly from the bill.

“Equity seller†is a natural person who is the record owner of a residence in foreclosure at the time an interest in the residence is transferred under an equity conveyance to an equity purchaser or to a person acting in association with an equity purchaser.

“Equity purchaser,†except as provided in section 11 of this 2008 Act, means a person that enters into an equity conveyance that transfers to the person, or to another acting in association with the person, an interest in residential real property sufficient to allow obtaining legal or equitable title to all or part of the property.

“Equity conveyance†means a transaction that involves:

(a) The transfer of an interest in a residence in foreclosure by an equity seller to an equity purchaser, or to another person acting in association with the equity purchaser, that allows the equity purchaser or other person to obtain legal or equitable title to all or part of the residential real property; and

(b) A subsequent conveyance, or agreement for a subsequent conveyance, of an interest in the residential real property from the equity purchaser or other person to the equity seller to allow the equity seller to possess the property during, or after termination of, the foreclosure process.

It appears that there's two parts to the definition "equity conveyance." 1) The foreclosure consultant has the title transferred over to them when they purchase the property from the seller, 2) and after some point, they're transferring the title back to the original seller. That is not what happens in a short sale.

I'm a little confused about your explanations about options and leasehold interest. Can you explain in simpler terms?

--Yvette

Smitnlit, Thanks for the info! I'll talk to the title company again, and will definitely show them this information.

Equity Examiner, I will look up the definitions of an equity seller, and equity buyer, and an equity transfer.

--Yvette

Hi Everyone,

I live in Oregon and we're one of 14 states that has foreclosure consultancy laws. I've been told by my title company that I can't perform investor short sale transactions due to these laws.

Verbiage in OR House Bill 3630 states that I can't sell investment property before 24 months. Otherwise the investor has to pay 82% the profits back to the seller (bank). Furthermore, violators of the law will receive a year imprisonment and a $10,000 fine. So the title companies are extremely paranoid about not breaking these laws.

Nothing in the bill refers to short sale investors or LLCs that buy and sell homes. From my understanding, foreclosure consultants purchase properties only to sell them back to the original home owner for a higher price!

Is this the same as a short sale investor, who purchases discounted properties from banks, only to sell them to buyers for a profit? I don't think so! But evidently we're thrown into the same category with the title companies.

My question to all of you is this; does OR House Bill 3630 apply to the short sale investor? Are there any real estate attorneys out there (from Oregon or out-of-state) who can answer my question?

--Yvette

P.S. Here's a link to the actual bill.

http://www.leg.state.or.us/08ss1/measpdf/hb3600.dir/hb3630.intro.pdf

Hi Duane,

Yes, I've spoken to the title companies. I did what both Jimmy C. and J. Scott advised, and changed how I phrased my question. I asked simply, "Are back-to-back closings allowed for short sale transactions?"

The title company did exactly as you described! They said they don't allow back-to-back transactions on short sales due to their underwriting. This was what they said at my local Ticor Title Company and their other location 30 miles out of town.

I only have two title companies in my area (Ticor and First America), and the second place said such transactions were subject to management approval.

They said this was because of OR House Bill 3630. Supposedly, there's verbiage in the legislation that heavily protects the homeowner from foreclosure scam artists. I told them that I was a legitimate business. but it didn't matter.

From the looks of things, am I going to have to do business out of state? Please let me know.

J. Scott, I would like to stick with back-to-back closings. But the title company in my area refuses to do them. There is only two title company in my area, and one of the title companies I was told by other investors NOT to work with. So it looks like I'm stuck and can't do those sorts of closings :(

SolidReturns, do they allow back-to-back closings?

Thanks for the update, Jimmy! I spoke to two different Ticor Title Co. in the So. Oregon region. Both places said it was illegal in Oregon to do back-to-back closings, but that it wasn't in other states. However, they didn't give a specific bill/legislation. She just said, "Due to our underwriting guidelines, state statutes, and depending on the actual lien holder, a simultaneous flip is not allowed." Is there anyway I can contest this information if they're lying, or look up the information myself? Please let me know.