All Forum Posts by: Michael Galloway

K. Marie Poe you are correct in your terminology. However, I knew what the OP is saying. He is the owner by Deed of Trust.

As for your question. The receipt from the Trustee Sale is not sufficient evidence and is not considered duly perfected title. The OP needs to record the Trustees Deed in order to converse with first trust deed lender.

Jon S., you just bought a ticking time bomb. As you know time is not on your side. I hope the your trust deed came already as it could take up to 10 to 14 days to receive it. And i hope you recorded it. You need to ASAP. Time is of the essence.

Just because you bought a second at the trustee sale does not entitle you to a extended redemption/reinstatement period. You will need to protect your interest by doing the following:

Plan A- get a hold of the 1st lender asap. Try to reinstate the loan by paying the deficiency. See if this is acceptable. Depending on the lender they may and they do, have the right to require you to pay the complete loan off if you fall within 5 days of the trust sale.
(California civil code 2924 explains the timelines and procedure of foreclosures in CA.)

Reinstating the 1st will buy you time by stopping the foreclosure.

Plan B- if you cannot reinstate. you must get a payoff demand and pay them off immediately. This is more money but will solve your situation.

Plan C- If plans A,B fail, you will need to protect your interest by bidding at the auction. You will need to bid above the combined value of the 1st and the 2nd (that you purchased) to protect your principle.

Side Note- Any overage over the bid amount you would be entitled to. However, it will take a while to collect. ( 1 year is the longest one i have had)

Lastly, i am sure you might be concerned with the deceased aspect, however this aspect is a non issue if you present your information correctly to the 1st lender in regards to a payoff.

Hope this helps, good luck and get moving.

Emily Dixon it sounds like more responsibility (Dad is slowly handing over the reins). I can not wait to hear more about your success and trials.

Chase Brister,Bernard Billings,Evan Ward, glad you guys are here. Looking forward to hearing about your successes and questions you might have.

Cory Rogers, just wanted to say welcome.

Not sure what you are referring to when you say "two properties a year get you tagged, and you lose many of the tax advantages" Remember to set up your "key words" and post a picture as soon as you can. Looking forward to hearing more about your success.

John Bouter, welcome to BP. We are all glad you are here. There is a wealth of information on this site, that will put you on the fast track to achieving the knowledge of RE investing. You can use the "key words" feature to locate local investors/mentors in your area. "medina, new york, mentor" you get the idea. Might i also suggest adding a picture to your profile. BP is a huge community. Looking forward to hearing about all your success.

Pamela Brown, i have some answers and some questions. 1) how did you find this deal?

Comps- one of the quick online tools you can use for comparables is Zillow. com. It is not as accurate as MLS comps, but can give you a good indication of recent sales. In addition you can also talk to your local real estate agents. They should be more than happy to get you comps, (they will be eager to get the listing once you rehab)

Tip on burned up houses/ water damage. Just because a house is $10,000 dollars and comps are $100K does not make this a deal. It's all about the rehab.

I have passed on numerous houses that are in the $20 -$30K range that sell for $250k because at the end of the day there is NO PROFIT in the "deal" My rehab costs run about $50 per sqft and my building costs run about $100 per sqft. If its 1000 sqft your rehab might be around $50k if its a complete rebuild it could be $100,000. I Hope this gives you some idea of what your costs will be.

What is the sqft of the property you are interested in?

James Campbell, welcome to BP. I look forward to hearing about your next purchase.

Elias Shahvar welcome to BP, neighbor. As far as your question, You can enter specific wants and needs into the "Market Place". Glad your here.

In the last month, I ran into 3 different people in foreclosure that all contacted the same institution of Attorneys in LA. This Attorney network is marketing "STOP FORECLOSURE" services. These services include illegal and illegitimate loan practices.

They start by contacting the Trust Company and the first deed lender with a bunch of legal BS. While this is going on... (by the way these are all paid services starting at $4500 dollars) they implement another service (minimum $500 per month) on a second (dummie) note and deed that gets recorded on your property. This is to start a paper chase for the first trust deed. The first trust deed must now notify the second that it will need to protect itself, so that it will not get wiped out at trustee sale.(Theoretically buying more time for the homeowner in foreclosure.)

These companies will continue like this until the owner stops paying the fictitious note that is attached.( really a service fee) This is Bank Fraud, and illegal. Please be very careful with notes that are not legitimate. This illegal disservice may stall the foreclosure sale, but inevitably will not stop the sale. In addition you could find yourself in court well after the foreclosure sale is over for these illegal matters.

18 USC § 1344. Bank fraud.

Whoever knowingly executes, or attempts to execute, a scheme or artifice--
(1) to defraud a financial institution; or
(2) to obtain any of the moneys, funds, credits, assets, securities or other property owned by, or under the custody or control of, a financial institution, by means of false or fraudulent pretenses, representations, or promises; shall be fined not more than $1,000,000 or imprisoned not more than 30 years, or both.