All Forum Posts by: Nick L.

@Sam LinWith auction.com-type sites, you don't get a chance to construct the contract. The banks give you whatever contract they want to, and you either sign it or you don't. The contracts are so heavily tilted in favor of the sellers that you are essentially hoping they choose to fulfil their end and have no comeback if they don't.

@Hannah Nguyen@Wayne BrooksThis happened to me recently. Won a homesearch.com property and discovered the SD had not been recorded yet. I insisted on seeing it recorded before I parted with the earnest money. 

Luckily for me this worked out and the deed was recorded in a couple of days. But I can imagine the bank refusing and the auction site charging the winner's credit card for the initial EMD.

I'd prefer to fight the auction site than to wait some indefinite amount of time for a deed that may or may not appear. Or worse, get a worthless QCD because the bank never had title.

@Jason V.The seller should provide a signed note from each tenant stating the terms of the lease. The technical name for this is an estoppel. This would prevent the tenants from producing a mystery lease later on.

@Michael L.Is this type of non-recourse SFR funding suitable for tax-advantaged vehicles such as SD-IRAs? Traditionally the problem with those is that you are not allowed to provide personal recourse.

@Wayne BrooksThe most important thing a Special Warranty Deed provides is a link in the chain of title. In this type of situation, where deeds go unrecorded and the seller's claim to ownership can be murky, I'd much rather have that than a QCD.

Generally speaking, a plaintiff can bid any amount up to the amount owed. Depending on the circumstances they may bid the full amount they are owed or a lesser amount. In my area you can call the plaintiff's attorney the day before the sale to find out what the bid will be. 

Filing bankruptcy would normally prevent a sheriff's sale for the period of the bankruptcy. 

The plaintiff's lien is *usually* in first position but there are no guarantees. The plaintiff names all known junior liens, such as HOAs, as part of the notification process to wipe them out. You should have a title company perform a preliminary title search, AKA search & hold, to make sure there are no superior liens to the one that is foreclosing.

Yes - either because the HOA lien was recorded before the mortgage, or due to super lien legislation in some states that bump the priority.

@Account Closedsaid, a quick check with an attorney or title company will let you know where you stand. 

Even if there is a mortgage ahead, you may still be able to negotiate a favorable payoff. 

It's worth spending an hour or two checking out the situation in case there is a bargain that other investors can't see.

You have to make 100% sure you know who is in first position. Depending on the specifics of the title history and the state's rules on super liens, either the primary lender or the HOA could have a superior lien. If you make a mistake you could end up in second position with a large debt ahead of you.

If your units are all the same size, the easiest way is just to divide the water bill equally. If they are different sizes, divide by number of occupants or number of bedrooms. 

However you do it, some people will ***** and moan about "I went away for a month so I shouldn't have to pay" or "The guy above me always has his girlfriend over but she's not on the lease so she doesn't pay". Just make sure it's a clear and fair policy to minimize this. And of course make sure it's clearly stated on the lease.