All Forum Posts by: Gabe Cole

Correct on both. If you are buying a property and you get your money into escrow on Friday end of business then you won't record or close escrow until Monday. Even though the buyer has their funds sitting in the escrow account and has performed, escrow can not close until the following business day. The seller still owns the property at this time. In your above example the title company would set up to record on Monday and once you have confirmation of recording then escrow closes and the buyer is now the new owner of the property. Up until you receive confirmation from the title company or recording the seller still has ownership.

Yes, seller is still responsible for house over the weekend as they are still the owner and their insurance should still be in place. I have never come across the scenario above, but if we got word that the house burned down over the weekend we would obviously contact the title company right away and tell them to pull the recording and we wouldn't move forward with the purchase or close escrow.

As mentioned above, the property has not closed yet and the seller still has possession. A buyer could do a final walk through Monday morning to confirm the property is still in the same condition as when it was purchased.

I personally have never done a deal without an escrow/title company in CA, nor would I recommend it. When going through an standard escrow the title company can't forget to record the deed as the way it is set up is the actual recording of the deed signifies the close of escrow where all parties are made aware that title has transferred to the buyer.

Someone else may want to answer this one since I have never done a transaction without an escrow company.

Here is how it works in CA.

The grant deed is signed by the seller in front of a notary and escrow holds the deed until all buyer funds are in and everyone is ready for closing. Then escrow sends the grant deed to the title company for them to setup for recording at the county recorder's office. Once the deed is recorded escrow is officially closed and buyer now is the owner on title. We typically get the call in my county near the end of the business day that we have confirmation of recording and escrow has closed.

Let me know if you have any other questions.

Update - I am just proceeding with a longer escrow. I had the buyer agree to remove contingencies and release their 12,000 deposit, which they did last week. We will close in about 30 days.

I don't know if you guys are referring to escrow states as well as attorney states. In California the deed can be signed prior to the close of escrow and the escrow company holds it until you actually proceed to closing and then it is recorded. The property wouldn't officially transfer until it records.

I decided to go the route of just having a long escrow, but was curious if you were referring to attorney closing states or if you still believe it applies to both.

The property sold in 2009 for 18,050.

I have no familiarity with this area, but I am a rehabber and a Realtor so I know how to look at comps. You aren't getting any good offers because of what is pending and selling in the immediate area.

3205 BRIGHTON St - Pending at 16,000
1513 ELLAMONT St - Sold at 33,000 and about 400 sq. ft. bigger than your deal.
3136 PRESSTMAN St - Sold 25,000
1422 N ROSEDALE St- Sold 31,000

All these comps are within 1-2 blocks of your subject property.

There are some higher listed properties that are active on the market in the 40k-70k range, but they have not sold. Some have been on the market for 120 days. Are you using the active properties to come up with your ARV? If so, that isn't going to fly. It looks like you are overpaying for the property and then trying to wholesale it. That is why it isn't working.

I think it's time to move on to the next deal and watch the sold comps.

Good luck.

Have you been inside the property? I agree with what has already been posted that either your ARV is too high or the property does need some repair work. Perhaps if you post the address we can take a look at the comps and tell you something you aren't seeing?

Yes, J Scott, I agree with you. I would have signed the deed with instructions for escrow to hold it until day 61 and then record. After more thought though it isn't worth the risk to have the buyer move in and find something wrong with the property just to save a little interest in the loan. I will just do a traditional escrow and close on day 61.

Thanks for the feedback.

Thanks Bill, that is exactly what I was thinking. The money would be released non refundable after their inspection contingency and they could get occupancy. Then recording in day 61.
Thanks.

I have a short sale I just rehabbed and put on the market that has a 90 day flip restriction that we signed on the short sale approval letter. We have 60 days left on this window. We do have a cash buyer that wants the property. Looking for suggestions on how to work this.

I have a hard money loan on the property so if I can pay that off early it would save roughly 5k. I was considering a 60 day escrow with the buyer releasing funds early (say after their inspection and contingency period 10-17 days and then doing an interim occupancy agreement with buyer so they could move into the house. Then once we are at 60 days closing escrow and officially recording.

Any feedback on doing it this way or any other suggestions?

Thanks.

Hi Cathy,

I have invested at the Trustee sale in California. I don't know if it works the same in CO, but you do need to have cashiers checks available for the full purchase price at the time of the winning bid. I know in Arizona you can put a deposit and then arrange for hard money by the following day. In my area there was a hard money lender that was specializing in auction purchases and they were willing to research title on the property before the sale and provide a loan at the auction, they were really expensive though...around 5 points and 15%.

I don't think you will get anywhere by calling the attorney's office or Trustee to find out any information. They will not provide any info other than what is public record such as opening bid or postponement and for what reason such as BK or mutual agreement.

I have followed properties that had been scheduled and get postponed every month for a year. There are so many delay tactics that homeowners are using the sales most often get delayed. Some do go to sale each day, it is just a lot of research to do for about 10% of the properties that will actually go to sale that day.

Let me know if you have any other questions.

Good luck!

I was interested in hearing from those that are having success with buying subject to deals. Is anyone doing his in a hot seller's market? I am in Southern California and the market is very hot right now, low inventory and multiple offers like many other areas. I would assume that it would be pretty difficult to get a seller to leave their financing in place if they see they could sell it fairly easily given the current market conditions, but would love some feedback on those having success with this in a hot market.
Thanks.