All Forum Posts by: Cheryl C.

It's not good for my mental well-being to try to remember disaster stories! Let's just say that I've learned a few lessons along the way!

Thanks for the link Steve Babiak. I read a couple of pages and skipped to the last post. Good ole Brian was there to provide the "cliff notes" summary.

I'd have to say appreciation and mortgage pay-down. I am shocked by some of the numbers that I see here. I could only make the 50% rule being in a war zone, which I have zero interest in doing (and I think, in all honesty, there are much larger costs involved in owning those type of properties). These have been the best cash-flow numbers in the past few years than I have see in 30yrs. Unfortunately, the bargains seem to have come and gone. I think we will see some good appreciation in the next 5 yrs due to supply/demand/interest rates/buyer confidence. Great! I am also giving myself regular pay raises when rent renewals come up. I flip when I find a deal, but those are few and far between.

Usually junk. But I have one good story. The locked garage contained spanking brand new, upper-end stainless appliances for the whole kitchen. It also contained a "new in the boxes", upscale bedroom furniture set.

Another had a bunch of kids bikes and toys. I knew a relative of the guy who was foreclosed on. I talked to him and left the garage open for the grandmother to come and get that stuff.

Wayne Brooks, I knock on the door to ask if they want to sell - just to get a small look inside. I haven't gone the court house in almost 10 yrs, but if you think that the other bidder's haven't been inside - you are in for a big surprise.

Yes, I have done this. Here in VA. we have at least 2 wks to check out a property. Still, no interior view. If the place is unoccupied there is a good chance that a window or door is open. If not, you can be sure that windows have been looked in and an assesement of the roof, HVAC, etc. has been made. You can also tell a lot by how the exterior has been maintained. Asking the neighbors is nothing new.

I bought my current residence at the court house. What I find somewhat amazing about the current shows is the level of profit that they are willing to accept - given the unknown costs that are there/could be there. I'm not going to "play" if people are willing to make only 5K. Many of "the numbers" presented are absurd. Have you ever flipped anything without transaction costs? No RE commision, closing costs, carry costs, etc.? Not to mention the low bids on rehab.

Brian Burke, the "unable" language is long gone around here. Now there is no limitation on the lender or trustee sending your check back. This was because "unable" and "unwilling" or "costly" (due to being sued by a mortgagor) are all different animals. They had to take out "unable". The lender in my case was clearly "able", as they held title via the Deed of Trust - they were simply "unwilling" to get sued by the mortagor. The payments on the loan were made thru auto-debit from another account with the same bank that made the loan. Due to some screw-up they were not credited to the loan. The owner was in Katmandu (sp?) and did not get the default notices or bank statements.

Brian Burke, HA! That is the case I used!. The language in my memorandum of sale stated that "the trustee can cancel the sale and refund the deposit if the trustee IS UNABLE to convey title". The issue was the definition of "unable". In a lexis search, I found that CA case. My attorney (who represents a different Trustee sale company) wanted the case and proceeded to alter the language in their memorandum. Now, most trustee's don't need a reason to cancel. This is why I believe a buyer can't be held to the agreement either.

K. Marie Poe, oddly enough, although my case was in VA., I relied on a case out of California. I would have been in a much better position had I already closed on the property - I made an error in visiting the property and talking with the tenants pre-close (tenant alerted owner in a foreign country). It was a total screw-up on the part of the bank and they were relying on language in the memorandum of sale that stated they could cancel the sale in the event of "impossibilty to convey title". Without going into the minutia, this could only occur if they sold the wrong property (ie: one in which they did not have title). I truly believe that the memorandum used now is not enforceable on a purchaser; there is no mutuality of contract. It costs money to hire attorneys but I stood to lose out on about 100K. I have also had the deed in hand and received $$$ to not record it and return it to the lender.

When I was buying at Trustee sales, I found this much more common than I expected. At least one in four was "cancelled" after I got it at the sale. If you read the "memorandum of sale", you will see that they can cancel for any reason. I sued in one case and the bank settled with me. This resulted in a change in the language of these memorandums. The only leverage you have is after they have conveyed title to you. Most of my cancellations were due to a last minute (I mean 10 minutes before the sale!) bankruptcy filing. But it could be the result of any number of things.