All Forum Posts by: Ken Mitchell

to my knowldege, you can't stall the proceedings before the auction usless you arrange payment.

you can, in NC, stall the proceedings once the foreclosure goes to auction. We have a 10 day upset peroid on each bid meaning if you go to auction and submitt the high bid, you still have a 10 day upset period to wait through before you are designated the winner of the auction.

to keep the property tied up, all you do is just keep upsetting your own bid. there is no limitation to my knowledge of how long you can keep this up so you could tie up a property for 20 years i guess.

the only catch, each bid requires a 5% deposit. once the home is sold and the foreclosure is satisfied, you get your deposit back.

supply and demand are determined by "time on market" in our market

find out what the payoff is....add 10k moving expense....thats your lowest possible purchase price unless you feel the homeowner is in a position to take less than that and bring money to closing....doubtful it would seem.

if 80% of the arv is greater than the payoff plus 10k, you're making a profit as long as your buyer is willing to buy the property for 80% of the arv.

if you're using a loan to buy a property, you're lender will require that the closing attorney do a complete title search to make sure that the home owner is in a position to produce a free and clear title to the property.

if the owners liabilities exceed the closing proceeds, the closng attorney will let everyone know before closing. If the seller owes more than your giving, they'll have to pony up the difference in order for the property to close. the title policy insures that the closing attorney has done his job.

i guess you could close a property without any kind of title work if you were paying cash. just write up a deed and hope that someone doesn't contest it at some point in the future.

1. find a lender and understand what they will require on the contract. meaning...contingencies and time needed to process loan..

2. find property, run comps, pull tax roles to see if there could be any equity in it before wasting your time.

3. call listing party to schedule a showing, ask them why they are selling, ask them if they feel it needs repairs, how long it will take them to close, are all parties on the title located and getting along well enough to meet at the closing table, ask them if they have any inspection reports or if the proeprty has a termite bond, get ALL the listing parties contact info.

4. view property, formulate a rehab budget, re-examine comps based on what you've seen.

5. offer on property. in NC we use a standardized "offer to purchase" contract which will eventually become the sales contract once it has been negotiated out and all parties sign it. Make sure all contingencies and closing period needed by your lender are accounted for before presenting the contract. This can be done from the car if you are so equipped....

6. negotiate contract and after all parties are good with the terms, make sure you can still read the contract as they can get a little fuzzy if they've been faxed back and forth several times.

7. deliver your original copy of the contract to your closing attorney so they can do title work and schedule closing. deliver the earnest check to the attorney at this time and send a copy of the check and the attorney's acknowledgement that they reciecved it to the listing party.

8. immediately call your lender and give them the contact info needed to schdule their required operations. they will probably insist on using their approved inspectors and appraisers.

9. call everyone daily to insure everything is going as planned.

10. use the information found during inspections and appraisal to renegotiate the contract if you need to in order to meet your contingency requirements.

11. meet all parties at the attorney's office and close the deal.

12. the closing attorney records the deed. DON'T DO ANYTHING TO THE PROPERTY UNTIL THE DEED IS RECORDED BECAUSE IT ISN'T YOURS UNTIL THIS IS DONE!!!

I'm sure i left something out but i'm sure someone will chime in...

AFAIK, the only way lending instiutions will actually give PAYOFF amounts is throught the loan holder and a title search won't reveal it.

my guess is they are giving you the equity "estimates" based on what the
recorded loan amounts are at the register of deeds...thats how it works in NC anyway...

Consult your local tax records to see who's on the title. If the hosue is in the foreclosure process, the foreclosed owner will still be on the title until the sale is done.

If the home is in foreclosure, go to the courthouse, pull the foreclosure file and see who is the trustee for the proceedings.

no, no, no

buying new starter homes for rental purposes at retail prices doesn't make any sense in the face of our strater home foreclosure crisis. Why buy brand new when you can buy the same home out fo foreclosure for 75 cents on the dollar.

I'm in charlotte and you can get lucky here flipping newer homes in higher priced neighborhoods in a 3 to 5 year period but i've seen no appreciable room for profits in the lower priced homes in that smae time period becase of the high foreclosure rates in that price range.

What info would you be seeking in a title search that could be lead generating.

you can suck a little cash out of it in the form of a loan and it should at least positive cash flow a little at that price...how much cash are you needing, 20K? what does it appraise for?

you have to weigh the present situation against your future goals and how having this property and an outstanding loan on it will affect your credit and your ability to borrow for future investment.

if your lender requires several years seasoning on the rent in order for this asset to be a positive one, do the deal with your buddy and dupm the place.

if your lender doesn't require seasoning or your credit is strong and they don't see this property as a liability, get a loan and break even on the property for a few years until it appreciates further.