All Forum Posts by: Jeremy Silva

I must say, BIGGER POCKETS IS AWESOME.

Thank you again to everyone who replied, you really helped me think about this smarter.

I will use all of the suggestions in future deals... I'm almost 100% sure of it.

Next deal that I have (for profit), I'll be sure to throw up here and show you what I'm doing!

Thanks everyone for your input.

We ended up using a promissory note that referenced the original note for payments and figures.

The note and deed of trust will be recorded in second position.

This will allow the seller to foreclose if need be. If something were to happen, I would just deed the property back to him, but I'm not worried about that, the loan is very affordable, there is equity in the house and this is a personal deal. No profit, just a great deal.

I'm not worried about future financing, and I don't want an escrow company, I'll be paying the lender direct, so I will know when payments are made.

The sale will be final and of course the Deed will be recorded.

We had our own Purchase Agreement and Subject-To Purchase Addendum, Our paperwork is good. However, I wanted to make sure that the title company was comfortable with everything so we could do this again in the future for a profit.

They never drafted any legal forms for us, but rather sent me a few copies of paperwork that they have used in the past, I explained what I wanted to have happen and once the title closer spoke with her attorney, all was well... he knew what to do, and we are closing on Wednesday the 2nd of March at 9:00am

The seller is happy and so am I.

I'm not worried about the due on sale clause at all... but thanks to anyone who worries for me.

After this, I'll be meeting with my attorney to cover any angles on deals we will be wholesaling in the future.

I talked to my Title company...

They are going to do a Regular closing.

Warranty deed. nothing special.

They will create a Note and Deed of trust for the current Principle balance on the existing loan. (the principle has gone up because of a neg am loan) This will be recorded in second position.

Simple, easy, and they are willing to do it for me and use the title attorney.

Watcha think?

THANK YOU THANK YOU.

I have been working with an attorney.

I live in Montrose Colorado and am having a tough time finding ANY Creative attorney's or title companies.

I like the idea of creating a quit claim deed and recording a simple agreement...

Heres a question?

Why does EVERY subject to teacher and course out there say that the original seller will have the right to foreclose if the underlying loan is not paid.

Every course also just glosses over the details... they just say...

"tell the seller he will be able to foreclose if you don't make payments"

To me, with the quitclaim deed being prepared and the agreement being recorded, this would be a Much swifter way for the Seller to get the property back...

interesting...

My "Assumption Special Warranty Deed with a Vendor's Lien" contains language stating that a deed of trust will allow the seller to foreclose. Just wondering what this deed of trust would look like.

Hello everyone!

Any input would be greatly appreciated, especially if you have sub2 experience.

Heres the Scenario.

My partner wanted a Personal property for himself, called on a FSBO and the conversation went well.

After a meeting and few phone conversations the purchase agreement was made.

With the purchase Agreement there is a Subject To addendum stating that the buyer will be taking over the payments.

Now, here is where I need some help.

The Title company is unsure of how to close the deal.

I want to make sure that the seller will be able to foreclose if the underlying loan is not paid by the buyer.

To do this, I was going to use a Special Warranty deed with a vendor's lien secured by a deed of trust.

My questions:

1. The Title company wants to create a wrap around and have my attorney do this... doesn't make sense to me.

2. How do I close and still ensure that the seller will have the right to foreclose if the loan is not paid.

(we want to make sure because we will be closing MAPS deals in the future where we will not be the buyer)

3. Could I record the Vendors Lien and Record a deed of trust that mirrors the original while changing the beneficiary to the seller?

I'm confused!!! HELP ME

(The loan is an Option ARM and I have the original Note with all the details)

Thanks.

I get it. That makes sense.

They really aren't disclosures.

but they make sense, because it just re-iterates the most important points that an unscrupulous investor may purposely try to hide from the seller and get into hot water.

Total transparency would be the reason for these acknowledgements, not because I have a guilty conscious.

-Standard Purchase Agreement
-Mortgage Assignment addendum (Sub2Addendum with a few extra words about assigning the contract)
- Seller Acknowledgements saying a few things.
1. I am the actual owner
2. I have reviewed the items and accept.
3. I have received consideration
4. I am satisfied because it's in my best interest
5. I'm fully informed and not confused
6. I'm satisfied with the price
7. Sale is final
8. Not a loan
9. Agreement may be assigned
....
Buyer entitled to make a profit

I Know that I am still on the loan and will have a continuing liability and may need to furnish tax documents to the buyer in the future.

Legal Counsel is advised

Financial review advised

No Guarantee to creditworthiness of buyer.

etc...

There are more details and a few more sentences but I didn't want to copy Phil's contracts verbatim on this forum, out of respect for his program.

Anyone use a Special Warrany Deed with Vendor's Lien here in Colorado???

@ FinanceExaminer

I am thankfully not in a contributory negligence state. I think there are only a few.

To be honest, I don't see any issues with this, but I can understand why my lawyer has some concerns, and I appreciate his input.

It is somewhat frustrating, as I feel my lawyer should be educating me about how to make this work lawfully, not asking me how it is lawful. My lawyer may be conservative, but at if brought up to speed, will be a great asset as many of his clients are here in my little town and will be calling to ask about me.

*********************************************
Does anyone know any good Subject to Lawyers in Colorado???????

***********************************************

I'm going to pick my most amiable seller that has the MOST to lose and the best personal relationship with myself and work this first deal out.

It's crazy, because even If I were to say to some of my sellers, sorry, I don't want to do this because of the potential legal issues... most, if not all would be begging to continue as it is the only chance many of them have.

I'm in Colorado, if anyone else has purchased the MAPS program and has had any legal advice in this direction I would be very excited to hear your input.

Thanks!

If he does allow affiliate marketing, it isn't promoted.

I was never informed when I purchased the program.... and I don't have any affiliate links.

But regardless... who cares... let's talk about the actual strategy.

I've Been speaking with a local Real Estate Attorney about this program. I have several sellers ready to sign up and I am currently having contracts reviewed and examining my risk as the investor. I really think the program can work if the investor does his/her job properly and finds good properties for solid buyers with some stability.

I have found some really STRONG self employed buyers with good credit and money that cannot get loans...
and then you combine that with sellers that need to walk away from a property AT 95 - 100% of FMV with 30 year fixed 4.5% loans.... Most of the sellers and buyers aren't this solid, but it can happen.

My main concern, and also my attorney's main concern is my legal liability in the even of default.

I admit there is a small chance, but I plan on doing this BIG and will undoubtedly encounter some crazy scenarios.

HERE IS MY MAIN CONCERN:

Is there a possible Tort issue by having the seller sign a contract that directly violates a contract they have with their lender?

Besides the Due on Sale Clause...

Could the lender claim damages from the agreement that you helped put together?

I understand the seller may walk from the property without this solution, but sometimes I'm working with sellers that may otherwise suck it up and keep the property. (Second Property they don't want anymore but can still afford)

I plan on informing the lender of the sale with the new insurance policy and a letter telling them what is going on.
Also, the seller will be paying for an escrow or servicing company to collect payments.

I have purchased the program and there are many forms including some strong sellers acknowledgment forms, Buyer acknowledgments,Disclosures, as well as the agreement of indemnity... but is this enough?