All Forum Posts by: Tom Gimer

@Jackie Lange You can't foreclose a prior owner -- they are out of title.

But yes, a foreclosure against current owner should get the ball rolling.  

Buyer should have paid for lenders and you would have limited work and zero out-of-pocket here. 

Let us know how it all works out.

Originally posted by @Lance Lvovsky:

In a 1031, the taxpayer taking title to the property must be the same as the taxpayer relinquishing the property (with limited exceptions). If you have a property in the name of your wife and yourself owned, why don't you transfer title to the LLC (with your wife and you as members) and then initiate the 1031.

Thank you, sir. This answers the exact question I was asked by a client the other day.

Can you point me to the code section or other resource that lists the exceptions? 

@Wayne Brooks One more thing... the existence of an owner's policy is irrelevant in this scenario. There is nobody "on the hook" for this other (1) than the owner who absconded with the BP poster's funds and/or (2) the title company who botched this deal ... unless a lender's policy was issued. And a lenders policy should have been issued as it would have been pennies on the dollar to do so.

@Wayne Brooks Lender was supposedly in first lien position. What's the point of title insurance if you don't get paid first? 

The coverage decreases as the loan is paid. Sounds like ZERO was paid.  

Was a lenders policy issued in connection with your seller financing, or just owners coverage? That’s the crucial issue. If you have a lenders policy, file your claim and you’ll have counsel. No lawsuits needed (yet). If you don’t have a lenders policy, that’s another matter to address with your title company in your lawsuit.

Do you have a lenders title insurance policy? Make a claim.

In your scenario you're the buyer. Your broker is earning a co-op commission ultimately paid by the seller, right? 

I say enjoy your success, and theirs. 

Every transaction is different. Fees/commission models are based on the average deal. In the title business, when we close an "easy" deal our client doesn't get a discount. That's because they are sure to bring a nightmare deal or two to offset it.

A common way of dealing with minor encroachments is to sell the strip of land that is involved to the neighbor. Costs: survey, deed prep, recording

I think you’d be surprised how many investors would say “don’t!” Getting licensed creates a whole new set of rules you need to play by. That said, it really depends what you intend to do in real estate. Having MLS access for research plus an agent to assist with the resale of renovated properties are two major reasons to have a licensee involved. Good luck!

Based on that language, there would be no contingency on the buyer side. You could have figured out the amount that would be the seller’s closing costs before making your offer. Seller is expecting to net the contract price. As to that language, here’s an example of how it could come into play... It turns out there is a $1000 water bill outstanding. Clearly that would fall on the seller side. The seller could elect to proceed to settlement and pay that bill, or they could void the sale.