All Forum Posts by: Ryan Raak

I was aware that the title wasn't in the original owner's name. I swear I even left a vm for the loss mitigator about this but she claims to have never received it. If it was going to be an issue both parties were willing to transfer it back to the original owner. I didn't hear back from the loss mitigator concerning the issue but it was on the HUD1 that she approved. Because of this the title company nor I thought it was going to be an issue. When pointing this out to the loss mitigator after closing she again said she didn't get my voicemail and claims she didn't notice the names on the HUD. In my mind that isn't my fault of the title companies fault. That is the banks fault. I agree though I think it's going to be an uphill battle.

My attorney is also my neighbor. He knows my limits so I'm not concerned about his costs. Worst case scenario I pay for the note in full which will cost me $30k more than my short sale payoff. I figure losing $30k but getting the property is better than losing $30k and not getting the property.

That is what we are doing Don. We really haven't looked too closely at the title policy yet and instead we are going after the bank. My attorney is now in contact with the banks attorney so we are hopefully making progress. I haven't heard anything yet though. Keeping my fingers crossed.

On April 2 I purchased a rehab property that was a short sale. This was a major rehab project and my crew had been ready and waiting for over a month so as soon as we closed we got started. Then, 12 days after (April 14) the bank (IndyMac) inquired about the title history. The title company gave them title history and back in '07 the owner transfered title to someone else (his business partner at the time). Fannie Mae is the investor on the note and they said this was a breach of contract and are calling the note due. IndyMac received a HUD prior to closing that showed this on the HUD and they approved it. Nothing changed from the HUD they approved prior to closing to the one used at closing. By this time I've got $30,000 repair work completed and planned to be done within two weeks (this weekend actually). I even had renters lined up and ready to move in. The bank has since returned my funds and they are in an account at the title company. The title company says it isn't their fault as everything was approved by the bank. My attorney provided a letter to the bank on April 27 stating my intentions of fighting this issue and that I have performed significant repairs. They have 10 days to respond. Yesterday I received a call from an agent as the bank has requested a BPO. I'm hesitant to let them in as I don't know their intentions. It could be that they want to verify the work that we said we've done.

Has anyone ever seen anything like this before? Shouldn't my title insurance cover me for this?

Thanks,
Ryan

Alex, I've had a lot of luck especially with Wells Fargo simply stating and having the owner type and sign a note saying that it was FSBO. I tell the bank that "I believe" they met with a couple agents and they weren't interested in listing it due to the market value being less than what is owed.

Actually Rob it is the 2nd that is pushing the foreclosure along right now (just got auction canceled yesterday) because the 1st has less at stake than the 2nd. This property has a 2nd that is more than the house is worth.

Scott, I've got the approval letter in my hand and it doesn't say anything about an arms length transaction. I don't want anything to do with fraud and that's what my gut instinct said as well. However, the more I think about it I just don't see it that way. I do have the ability to close and hold the property for 30-60 days or more if necessary. Is there a timeline involved? Meaning if I purchased and owned the property for 60 days could I then sell it to a family member of the original owner?

So, I'm working a short sale and just received counter offers from both the banks (1st and 2nd) so I have a max amount I will be paying for the property and now the owner tells me his dad wants to buy it from me all cash. My instinct was that we cannot do that but the more I thought about it maybe we can. Thoughts?

Also, I would have the homeowner keep an eye on their credit report, bank accounts, etc. If the rogue negotiator has all their financial info, ssn's, etc.

You've got some good feedback here. I would add that either you or the home owner need to call the bank and inform them that the negotiator is no longer working this case and ask them to be removed. You might need to provide something in writing but at least get some notes on the file.

A good, trustworthy negotiator wont charge you anything up front. At least I don't. I think some of the bigger operations do though. They make their money when you close.

Were the comps in a distressed situation or just comparable in size, style, location, etc.?

If they weren't distressed comps then you need to adjust the value of the property accordingly. In my area a house like this with good comps in 240 I would give this house a value of 190k. I would then start my offer at 70% of that value. So, I would offer 133k. I would expect to end up paying closer to 80-85% of the distressed value.

On the flip side I don't really have any competition. I'm not in a real big city (150k people) though. I've heard of one person doing something similar to me and one agent but the agent was getting a bad rap with other agents as he wasn't disclosing what he was doing with buyers/buyers agents.