All Forum Posts by: Ed W.

I don't know MA law or customs and I sure as heck don't know what you contract says and you have not provided important details, so this reply should not be construed as an answer for your particular situation just some general thoughts to consider both now and in the future:

1. The financial strength, professionalism in management or lack thereof, and liabilities of a condo association should always be considered strongly as part of the buy/not buy decision.  "...they are saying it has nothing to do with purchase of this property..." Baloney of the highest order - anything that ultimately has a bearing on dollars and cents; i.e., profit and loss, is pertinent to the decision of whether or not to buy.

2.  Among other things, contracts should contain language that allows you to terminate if you - in your sole and absolute determination - are not satisfied with the condo assoc, the terms and conditions of insurance you are able to obtain, and title.

3. An attorney needs to be consulted to determine your vulnerability to a specific performance lawsuit if you bail on your current contract and you have to decide whether losing your earnest money is better than closing (assuming your attorney can't find a legitimate way out of the contract).

4. I don't put much stock in the seller's reasoning as to why he won't approach the insurance company but the wording of your contract determines how much leverage you have to force him to act.

@Daniel Dadzie

I apologize, Daniel, I must have had too much vino with dinner.  I looked at the map incorrectly and my $1 million comment is absolutely incorrect and very far from the truth.  That said, my basic premise of a zip code generally being too broad is very often correct.

I haven't been on Stevens in a long time and I'd have to drive it to say with certainty but my strong suspicion is that it likely won't appeal to decent tenants.  That general area requires dirt-cheap purchase prices and a willingness to devote a lot of time to management.  It's not for newbies or the faint of heart.  There are better areas within which to invest and get better returns.

ARV's in 43222 range from around $10,000 to around $1 million. You need to be way more specific. While most zips do not have that dramatic range, most zips have good and bad areas. Specific streets, subdivisions, and condo associations can make huge differences.

@Sam Boutros That you've been looking through Loopnet suggests you're looking for larger properties but that is not definitive.  Why don't you let us know the range of the number of units you are looking for.

The language of the commitment is definitely not right.  Sounds like utter bs to me.  I'd run, not walk, away.

@Chris Daliani

I don't know anything about foreclosure in NJ but there are some basics that are pretty universal.  You use the term "pre-foreclosure" which most often means the lawsuit on behalf of the lender to take the property has been filed but the court has not yet declared that the lender has a right to the property.  In NJ, I believe that process for owner occupied property runs at least a year.

If you and I are using the same definition for pre-foreclosure, the property owner is the only person/entity you can deal with.  The bank won't talk to you (even if the bank owned it, 99% of the time you'd have to deal with an agent, not the bank).  

You need to determine the FMV in the property's current condition and the financial total of all the liens (mortgage(s), tax, judgment, etc.) on the property to determine whether or not it's worth your time. You can get a lot of that from the owner as well as determine the owner's level of motivation to sell and deal with you. That's where you start.

If you close the deal and make a good buck, you get to choose whether to celebrate with the help of Petridis, Cafe Bello, or Judicke's.

I don't know anything about the laws in the area but assuming a court can't subpoena you related to the condition of the property and force you to pay for repairs you have no way of getting reimbursed for (e.g., selling for a price high enough to recoup those costs), the worst may be a significant liability claim for an injury of some sort if you fail to maintain liability insurance or they refuse to pay for some reason (if you get notice from the city of a dangerous condition that you don't remedy, the insurer usually/often won't pay).

@Account Closed

'There are civil and criminal laws. As the seller I feel I would have no problem getting the police to make contact with the "investor"'. I am neither an attorney nor a police officer but from my lay perspective I see no law that was broken and I seriously doubt the police would get involved.  If I'm incorrect, so be it.

'As the listing agent and the tenant there seems to be possible actions for slander.'  I believe it is never a good idea to repeat second hand information and I fault the investor for having done so.  I'm not smart enough to know whether what she said rises to something that is actionable but I seriously doubt there are provable damages to make a suit worthwhile.

'As the tenant there could be claims of intimidation and false imprisonment.'  If the investor's account is true, it appears she was polite.  I don't understand the basis for your statement.

"What if the intrusion did not result in a sale and now the tenant is so pissed that they are fighting any attempt to show."  My original reply specifically stated that the investor had an obligation to be polite and not argue or otherwise force the issue if the tenant was reluctant to cooperate.  You are speculating.

'The owner would have a strong case against the "investor".'  For what?

'What if the property was broken into the next week. Can you imagine the cops talking to the owner about the people they sent over the week before?'  If anything, the listing agent was derelict by not telling the tenant they should let no one in without the agent.  Again you are speculating.

'The second part to my question was the posting on the internet. Even now I think the investor has put themselves at risk.'  I don't see it, but perhaps an attorney would disagree with me.

'Good results can erase some bad behavior. My question was do you consider this bad behavior?'  Under the circumstance described, I consider her negative comments about the agent - especially since they were second hand - to be inappropriate.  I also believe that she could have made that visit without disparaging the agent even if she heard it first hand.  If the tenant was unaware that the property was being offered for sale, I would consider her being the bearer of that news to be a significant breach of the ethics of our business.  I would not want someone to do that to me.  Those two things aside, I don't consider her actions to be bad behavior UNDER THE DESCRIBED CIRCUMSTANCE.

One man's opinion -

Buyer's, if they are not themselves members of the MLS system, are not bound by its rules and I don't see how anything she did violates the law.

IF the listing agent does not do his/her job - and sometimes they do not out of greed or sloth - it would be INappropriate for the buyer's agent to go directly to the tenant leaving the buyer with a tough choice. Their remedy is likely through the MLS system.

IF the listing agent is not doing their job and IF and only IF it is clear that the tenant is aware that the property is on the market (remarks in the MLS system, sign in the yard, etc.) I don't think it's illegal or unethical for a buyer to knock on a door provided they are extremely polite and defer without argument to the tenant's wish to remain undisturbed if that is the tenant's wish. I'd still probably recommend that the offer at least initially go through the agent in the manner of a curb offer.

If  a buyer is even a little unsure whether or not the tenant is aware that the property is on the market, I personally I believe it would be inappropriate to share that knowledge with them.

Would the buyer be subject to sanctions from the agents? Sure, the agents could elect to not do  business with them though I believe the listing agent in most states has a duty to present the offer.

@Bill McCafferty You wrote above "Sometimes the allonges are stamped on the back of the Note. Not having the original note, doesn't help you. You will need to clean up the allonge chain. Put pressure on the Note Seller to fix the allonge chain. If it's a MERS loan there website may help."  (Bolded for emphasis)

I'm familiar with how to get the current servicer from MERS but I've yet to figure out how to get the chain of mortgage assignments within the MERS system.  Can you please share how to do that?