All Forum Posts by: Mike Nelson

Does HUD have a maximum commission they pay the listing agent? if so, they would net more if no buyers agent was used. Which Im under the impression they only care about what they net from the sale. I guess what I really want to know is do I need to find an agent to is willing to put in 100s of offers for me a week?

So can you place bids as an investor with the listing agent directly so you do not need a "hud registered" agent representing you as a buyer? im reading some conflicting posts on this. I personally want to start making HUD offers, can I have the listing agent be my "hud registered" agent? or do I have to find a buyers agent to submit all these bids for me?

I have an REO under contract that I can convey to an end buyer for a possibly better deal than flipping myself. I am bound to use the Banks title company per the addendum. What are my options for double closing without the bank knowing. Can the title company inform the bank this is what im doing? Can I close at the banks title company and then close at my preferred title company with the end buyer in the same day? anyone dealt with this? (im pretty sure, just need some advice)

How about short sales? If the short sale listing has 130k in code lien fines, and 13k in mechanics liens, are these the likely candidates that will go to foreclosure? Not that I "should assume" the bank wont accept a low offer I propose to the owner, but for a house that needs extensive rehab work, plus the cost of getting the liens removed from the city and contractors, there wont be much to offer on the property, it seems the bank will probably say "screw it we'll take our chances in a foreclosure auction?" I could be overreacting , but I have a short sale scenario I am looking at with these issues...

@Patrick L.

Patrick, I just looked on the City's website and they also have the lien amnesty program. It states the liens can be brought down to 15% face value once all violations are inspected and accepted. So essentially I could factor roughly $20,000 into the purchase price to cover this.

Ok heres the situation, I looked at a property that is a short sale. The listing agents listing mentioned a code lien for landscaping. I looked in the public record and found that lien from the city , and another for pool barrier violation. The owner cut down a tree and failed to replace it with a new one. Lien was filed with the county and accrued $100/day penalty, no tree has been planted that I could see at the house and no release of lien in the county record, so from the date the fines start to today equals $68,200. The other lien was for no pool barrier, which is code here in Florida, that one notice date is up to $64,700. Someone put up some orange snow fence and put a cover over the pool (im assuming the bank for liability reasons), but there is no release of lien. I also found a mechanics lien from a contractor for $13,000. So thats a total of almost $146,000. The only way I can see them doing this as a short sale is for the bank to fix these issues with the city, and settle the lien with the contractor. There is no way I want to sign a hold harmless so I take the risk of the city liens being reduced. I have no problem putting in an offer, but I would only do so noting seller to deliver marketable title. Any suggestions??

I'm guessing a lawyer who has dealt with these issues in these particular cities is the best way to attack these opportunities... I would feel pretty sketchy using a code enforcement guys "ball park" figure. Or is this just part of the game for the investor who is willing to take the risk??

So the risk to the investor/rehabber is the likely hood you will be stuck paying the 100k for a tree violation or tall grass once the issue is re mediated? In other words the city would be ### about it.. Can you have a written agreement with the city that the fines will be reduced to x amount once the issue is fixed?

Whats the best way to deal with code/maintenance liens from city municipalities that are recorded as liens on REO, you know the $250/day liens. Some of these REOs im looking at are vacant since 2011 and the lien was recorded from that date, so were talking supposably over $100,000 in daily fines!! So for a property worth 200k selling for 120k is it the banks job to negotiate with the city to release the lien in order to convey title to the new buyer(me) who will clearly fix all the pending issues? I guess Im a little stuck on making my offers on these REOs with City liens.