All Forum Posts by: Leonard L.

again, depending on the state, it may take longer than a month. could be much longer.

Instead of waiting, I would have your title company contact the title officer from his last deal and confirm the pay off. The old title or escrow officer can provide copies of the release documents, which in turn should be enough for your title company to eliminate them from your buyer's title insurance. That's assuming what you are being told is true.

But no, you would not need an attorney to negotiate the discount. If you want to try that route, first ask the title company for a release form subject to payment. Then you and the creditor fill out the amount to be paid to release the lien and submit the document to escrow. Make sure the form does not OBLIGATE you to pay, but rather says IF you pay this amount in the next 30 days, by creditors signature on the document, escrow is instructed to release the lien. That way, you can have one creditor sign while you are still working on the other creditors. But again, with so many different creditors, this is a huge long shot.

I would steer clear of this one.

Liens are purely a product of state law, so they will be governed by Indiana law. You are unlikely to get state specific legal advice here, and also unlikely to afford an attorney for a deal this small.

Your best bet as suggested above is a heavily discounted pay off. You negotiate paying, say 5-10% of the outstanding balance at the closing, they put a demand into escrow along with a release, and it could work. But I looked at the judgments and they are from multiple parties. The chances of you contacting every lien holder, negotiating a huge discount, and successfully getting all those docs into escrow is very small. And all that for a very small profit on this house anyway after discounted judgements and closing costs.

I would look for another deal. Sorry.

Rusty:

I just want to caution you that building out new product may be more complex than you think. As a developer, I can tell you that construction financing is very, very difficult right now, and that even in good times you would have to sign a personal guaranty (which in today's times, means the bank will hire a proctologist to make sure it understands your personal assets and that they are all pledged). There are impact fees which drive up costs, etc.

My strategy in today's market would be only buy the existing duplex if you can generate positive cashflow meeting your return requirements. I am buying in a market where values have come down so far that new construction makes no sense. So I pencil very little additional value for the lots, which I hold until new home values increase and construction financing loosens. Then I plan to sell the lots into a strong land market to someone who specializes in new construction. Use that money to reduce your basis in duplex or to put into more property.

Requires patience, but if you can pick up lots on the cheap in this depressed land market, with rentals that generate cash flow, it will be a great long term play.

Leonard

Just wanted to share my experience. I bought a house on courthouse steps last week, and by end of week I had already cut deal with former owner/occupier to pay market rent plus security deposit. I think this is win/win with little downside. The guy really wants to stay in his house, and has extensive backyard landscaping that he values highly (but would be negative if I had to maintain or tear out for next tenant). I usually budget 10% vacancy per year, but for this property I zeroed that out, effectively raising my return. I will be using this same approach in the future, and wanted to share my experience.

On the one hand, this is likely to stabilize prices. On the other, it likely will result in significantly less supply for those of us that have been buying foreclosures and REOs.

I have just started investing in foreclosures on courthouse steps. I have always heard it is best to kick out the old owner and start fresh. However, if you could The Property Report last week in WSJ they profiled hedge fund GI Partners which has committed $250m to buying at foreclosure auctions and renting to tenants. What caught my eye is that their business model calls for first trying to make deal with old owner to stay in property.

Anyone have experience to share?

Can anyone recommend a good Unlawful Detainer lawyer in Riverside County, CA? I am looking at an REO deal from a bank which is a good $20k below market, but they want me to close with a tenant in the property. I need a good UD lawyer to consult with.

Recommendation?

For extra credit, additional recommendation for B/K atty in case I go forward and have to fight the tenant in BK?[b]