All Forum Posts by: Account Closed

So I was considering selling my duplex. I got with an agent and she referred me to an appraiser. I gave the appraiser my PM info and he was to schedule a time and day to go out and look at the duplex. He calls me on the day after he had already left to tell me that the PM never showed up to meet him at the house. He says that he did walk around and measured and did half of the appraisal but that for him to come back out he would have to charge me. I asked him if he gave the PM a call when he got there and he said no. I asked why didn’t you give them a call? I mean I get that that didn’t show up but a simple “Hey where you at?” Is all you could’ve at least done. So because of that he ONLY did the outside and didn’t get to go inside either unit. He then says he can go off of what I tell him the inside is like but I prefer he goes in and looks hisself since he’s the appraiser and I don’t want ANY thing to be misinformed.

So I was going to go with someone else instead because to me that shows a lack of integrity.

He texts me this morning asking if I got another time for him to come out and told him I was all all set. Sure enough he asks if I’m going to pay for what he did. I say what did you do? He says basically that he did the appraiser. My question is, is it really an appraisal if he didn’t go inside the unit? I mean that’s where most of the upgrades. What do you guys think?

The appraisal initially was going to be $450. So if I let him go back out to look at the inside, he says he’s going to have to charge me another $50. I feel like he’s trying to cheat me.

I'm not sure what the appraisal is for. Your agent is supposed to have enough experience to do a BPO (broker's price opinion) and suggest a worklist and a listing price without involving an appraiser. This shouldn't cost you anything upfront. I'd tell the broker that if she needs outside help from an appraiser, I'd let them in the property but the appraisal cost is on the agent. Get it in writing or choose another agent. This agent probably isn't ready for that property. I've never had an agent want an appraisal before listing.

1 Vote

Originally posted by @Patrick McGrath:

New Bill past 10/1 states no evictions or foreclosures for 1 year for non payment as of date of bill.

Thoughts?

https://www.bloomberg.com/news/articles/2020-10-03/house-coronavirus-relief-bill-would-ban-evictions

I would be shocked! Shocked, I say, if the Senate passed it and even more shocked if the President signed it.

That would be a good time to sell everything and start buying in Uruguay where it is only Socialist, not whatever this country would become.

4 Votes

Originally posted by @Mustafa A.:

Are Washington state purchase and sales agreements required to be signed off by notaries/witnesses?

No, they don't need a notary or witness.

1 Vote

Originally posted by @Chris Seveney:

Reminder to people out there, if you have your servicer handle the forced placed insurance - remember after a foreclosure or deed in lieu where you get the property back the property is no longer insured.

Recently had a house burn down that we recently foreclosed on and thankfully I carry insurance thru my agent and not servicer but reminded me of days when I went thru servicer

This should be added to a REO checklist item for yourself

That's a great point to make. I remember times when I was buying pre-foreclosures that I had people tell me they would "burn the house down before giving it back to the bank". I always told them spending time in prison and becoming a "girlfriend" to a guy named "Bubba" wasn't a smart way to get back at the bank. I might have talked one or two out of doing anything rash. ;-)

1 Vote

Originally posted by @Jay Hinrichs:

Originally posted by @Account Closed:

Originally posted by @Annie Dillon:

Wondering how people close in one day when title work takes a minimum of a week or two. Do you not use a title company? Thanks

Yep. If they are closing in a day, they aren't getting title reports or using escrow. That's a very big issue and red flag.

I did a lot of this when pre foreclosure rent back was legal in Washington and Oregon.. there is some risk.. I could get a full title report many times if the name was not a Smith or something if i ordered it in the morning at got it say by 3pm.. I did not abuse this.. but we did have a customer service rep that handled our account and she would do a date down on the computer verbally to me.. and it was 97% accurate..

so you just have to know you may do a boo boo one time.. but in this Niche we were spending only maybe 15 to 50k per deal to rescue them. so if one went wonky it was just the cost of doing business.. But as I think back on a few hundred of these that I closed on my own all within 24 to 48 hours of curing the foreclosure before the sale.. I don't think we lost on more than 2 or 3 of them.. And the home runs totally made up for it..

for the average investor this would probably be a non starter.. but larger well capitalized companies that do it for a living its just SOP and my company was not the only one doing this.. the laws in Oregon and WA changed in 08 ish and foreclosure rescue lease backs became illegal or highly regulated as to be not worth doing..

I know in parts of the country were they have to rely on title abstractors to physically go to the court house that takes time.. and what I see taking the most time in the big back east cities we work in.. is trying to figure out the UTL bills.. in our markets here other than the city of Portland the Bills did not attach to the property.. so it was not a worry.. it was just figuring out Lien positions and regular tax's and any other Liens that maybe on the property like IRS etc.. I have to say though our customer service departments in our major metros here are truly unbelievable help to the hair on fire investors.

And of course we prepped our own deeds got with the seller to notarize and ran them to the courthouse to record them.. then we would courier the reinstatement cashiers check to the foreclosure trustee ( in those days based mostly in Seattle) we had the gal at the law office on speed dial.. its was pretty exciting really. Our main one was Northwest Trustee services but I think they rebranded and are not under that name anymore.

if the seller is not losing the property then there really is no reason to not go through title and as John states many scammers or those that sell bad title properties will try to get you to just accept a quit claim deed etc.. those are to be looked at very carefully and not suggested at all..

Back in the day when I was buying pre-foreclosures in Seattle, Northwest Trustee would sell you a copy of their Trustee's Title Report for $20. I took that route. Then I would do a purchase & sale agreement with the seller, get an authorization to discuss the loan with the lender, along with a notarized Quit Claim Deed, (I learned to use a Warranty Deed later), get the reinstatement amount, send in the reinstatement and bring the loan current, give the seller their equity so they could move, record the Deed and take over the financing Subject To. Then I'd fix up the property and sell. Made a lot of money doing that but it's a tad risky. You should either really know what you are doing or be well capitalized, or both.

1 Vote

Originally posted by @Annie Dillon:

Wondering how people close in one day when title work takes a minimum of a week or two. Do you not use a title company? Thanks

Yep. If they are closing in a day, they aren't getting title reports or using escrow. That's a very big issue and red flag.

0 Votes

Originally posted by @Matt Williams:

Have you ever walked away from a great deal on a rental (20% CoC) on principal alone because the seller is being wishy washy and nit picking over a minuscule amount of money?

You are absolutely right!

What's their name and phone number and how much do they need and I'll take care of this right now! You won't have to be bothered by it anymore. ;-)

2 Votes

Originally posted by @Chris Mason:

Hello! Not a lot of posts from me of late, I have of course been buried. I wanted to leave a quick note on something.

For those that have not already refinanced and gotten their #covidrate, we're now at an interesting time: Starting a refinance right now will automatically be an election hedge. A few caveats:

- This will not work for home buyers, only refinancers.

- This will not work nearly as well with a direct lender or mortgage banker, mortgage brokers have a far greater ability to be promiscuous and disloyal to lenders than someone employed directly by a specific single lender or bank, obviously.

Front page news stories often cause rather large inter-day interest rate swings. The election results certainly qualify as that.

For this thread, please do NOT discuss who you think will win, why, or claim to have a crystal ball telling you what impact the election will have on rates, the day after the presidential victor is announced. I will summarize the three possibilities below:

- Rates could go up the day after the election, maybe by a lot.

- Rates could go down the day after the election, maybe by a lot.

- Rates could just kind of shrug and not really do anything.

There you go, there are the three possibilities. No crystal ball commentary needed, thanks!

If you're working with an independent mortgage broker that works with multiple lenders and banks, and you lock long enough that it's good for a week or so after the election, here's how this could pan out for you:

- Rates go up. You call your mortgage broker and say "Jeez, I'm super glad we locked when we did, rates are TRASH right now all of a sudden. Let's close this puppy out with that pre-election rate lock! Whoop whoop, I win!!!"

- Rates go down. You call your mortgage broker and say "Hey! I know it's extra work for you, which I *totally* appreciate, but I'd like you to start from scratch with a new lender, these rates are EVEN LOWER than before, by a LOT, and I want to take advantage of that. I understand that this will require a new appraisal and accompanying fee, and I'm not sweating that, I want DAT RATE! Whoop whoop, I win!!!"

The price of that hedge, as noted, is that you will possibly be on the hook for a second appraisal fee, and of course we can't guarantee that this next appraisal will come in as high as the last one. And, naturally, there will be more paperwork, since you're starting from scratch in the eyes of that new lender. The hypothetical rate drop would have to be compelling enough to make it worth it for you.

There you go!

And, since I have your attention, and I know what the BP community always wants: cash out refinances are back to being broadly available, more or less. :)

ANOTHER NOTE: In about a week, the last of the big wholesale lenders will be implementing the adverse market refinance fee. Everyone else has already implimented it.

On my end, if curious, I'm already counter-hedging. If two lenders are priced the same for a given type of scenario, but I have one I like better between the two, normally I'd send all the files to the lender I like best and call it a day. Right now, for scenarios like that, I'm tossing a coin. That way, if they *all* have to be re-originated, at least only half are with my less-fav lender, and half are still with the lender I like, rather than 100% of them being with the one I'm not a huge fan of.

Good luck!

Nice post. I can't wrap my head around 2.89% rates ;-) When I started in real estate, "good" rates were 18% and finally dropped to 8% which we thought was great and the "bail you out of foreclosure rates" were 14%. We were told we'd "never see 6% rates again". I know, I know, I'm showing my age.

But, to think rates could drop "by a lot" from where they are now is incomprehensible in a sane market. You never said it was a sane market, don't get me wrong, but I'm just sayin'. It staggers the imagination.

So, even if rates double, I'm buying like crazy.

2 Votes

Originally posted by @Jaron Walling:

@Matt McGuire I'm in the exact same situation. I'm cash-flowing OKAY ($150 per month) but it's rented to family. If I replace a few windows, flooring, and complete some minor things I could sell. I'm leaning towards selling. I lived in it for about 2 years then moved out. I'm in a holding pattern until my brother decides to move.

My market is weirdly high priced right now. I'm seeing random flipped houses that sold in 19' for (x) amount go back on market this year for $30K more! Zero changes. They don't even change the wall colors.

People must have DUMB money right now but I sure don't.

The smart move would be to refinance and take as much cash out as you can and invest the cash. That way, as the property goes up in value you get the appreciation, you still get the depreciation and you have tax free cash to put toward your next property.

If you sell, you pay the costs of sale (8% to 10%) you pay capital gains, you give up the appreciation that is to come, you lose the tax write offs and give up your cash flow.

Run the numbers and see the huge difference.

2 Votes

Originally posted by @Brady Shipley:

I'm a newer agent here in Phoenix and I am looking into doing my first flip. I am a licensed agent but for my first few flips I would like to use an agent that is experienced in investing and flipping. I would need help with finding contractors and figuring out what hard money lender to use as well as advice on what property to purchase looking for a lighter cosmetic flip. If there's any agents experienced in flipping in metro Phoenix that are interested let me know!

I think what you are looking for can be found at your local REIA. Look up AZREIA.org

0 Votes

All Forum Posts by: Account Closed

Account Closed has started 12 posts and replied 576 times.

Post: Appraiser tryna screw me?

Post: Corona Virus Relief bill - No evictions for a year!

Post: Washington state purchase and sales agreement

Post: Forced placed insurance

Post: Close in one day without title company?

Post: Close in one day without title company?

Post: Walking away from a great deal

Post: HOW-TO: Election Hedge your Mortgage Refinance?!

Post: It's a seller's market - Are you going to sell?

Post: First Fix and Flip Phoenix AZ