All Forum Posts by: Karen Foster

HUD properties are generally owned by Fannie Mae or Freddie Mac. The 203k loan includes cost and fees, which are added onto to the loan, as stated. Although the commission is reduced, it should be split between the two agents.

Hi Roger, 

The agents commissions have nothing to do with the type of loan the buyer has. I am assuming there is a CA residential purchase agreement or and agreement on HUD forms in place? So there should have been a disclosure for agency and commissions before opening escrow. The buyers agent produced a "ready, willing, and able" buyer. So the commission must be shared between the sellers agent and the buyers agent. It is wrong for the buyers agent to request that the buyer pay their commission prior to close. This should have been established up front. The sellers agent cannot keep all the commission unless they are acting as a dual agent and are representing both sides. Best wishes.

Will do, thank you. :)

@ Linda Cheng, great! If you need any information for the probate listing or assistance in putting in an offer I am happy to help, providing you are not already working with an agent/broker. 

Kind regards

Great information BP community. Linda, your post doesn't mention if the probate listing is being auctioned by Kennedy Wilson in the MLS. KW is a premier auction company, and probate listings are also sold through real estate brokerages minus the auction platform.

Hello Linda! 

The general rule for probate properties listed in the MLS in the LA county are as follows. You would need to make an offer on the probate listing through an agent. If your offer is the first offer accepted then all overbids are 10% above list price or the first accepted offer. Please be aware that there can be a bidding war. The listing agent will update the MLS once a hearing has been set. There is usually one future court date that all interested parties must attend. The court will announce the offer in first position and then ask for any overbids. Yes, your understanding of the overbid process is correct. Be sure to have your agent accompany you to the hearing. Best wishes.

Hello Wyatt,

I live and work in the So Cal area and market. It has been my experience that lenders will not allow you to assign a bank owned property. The LLC must first close on the sale and then you can assign to an end buyer. I have experienced only one occasion where a lender allowed my investor client to assign the LLC's interest to a second entity before closing.

Good afternoon Gary! I have access to hard/private money contacts you can call who are asset based lenders. Please send me an email and I am happy to pass along their info. 

Regards

Hi Wendell!

I am not aware of any title companies. However, Brighton Escrow in Hermosa Beach is familiar with wholesale transactions. They should be able to accommodate you. Here is the info.

Brighton Escrow, 970 Artesia BL, Hermosa Beach, CA 90254. Ask for Maria.

Karen

Good evening Alex,

Do check with the City of Los Angeles, especially since the property is located in a rent controlled area. There is a California landlord/tenant rights website and local advocates that can address many of your issues. I would also suggest you consult with a real estate lawyer. Unless the existing tenants have lease agreements, they are considered month to month. As the new landlord, you can send a mass letter to the tenants announcing change of ownership and/or go door to door and get a record of rental payments and leases (if any) from each tenant. Yes, an estoppel supports an existing agreement. I believe you are allowed to raise the rents by 3% per year for existing tenants. For a vacant unit you can ask for market rent. I would see if the current tenants want to remain once you take ownership and provide them with new lease agreements. It is best to check with the City, as to whether or not you are responsible for relocation fees. It sounds like you initially will have to cover some of your investment's costs before the property stabilizes and your rents can cover the mortgage. If you are using a Realtor, get them involved in assisting you with your upfront due diligence, such as finding out about the current rents/leases.

Good luck! Karen