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I have a foreclosure under contract currently in Baltimore, MD and 2 days before closing the bank came back to us and said they didn't have the title yet and it could take up to 2 months. Is this common or is the bank just taking their time for some reason? Also, would it be appropriate for me to ask for a lower price because now instead of getting a renter in during the busy summer moving season I now have to wait until possibly mid fall?
Very interesting topic indeed! Foreclosures will definitely get more popular around the end of August, and when winter arrives again. Currently, the markets are being propped up by a sudden increase in buyer demand so I would say that this is definitely something to look into.
I have a foreclosure under contract currently in Baltimore, MD and 2 days before closing the bank came back to us and said they didn't have the title yet and it could take up to 2 months. Is this common or is the bank just taking their time for some reason? Also, would it be appropriate for me to ask for a lower price because now instead of getting a renter in during the busy summer moving season I now have to wait until possibly mid fall?
@David A. Unless you are a licensed lender or broker title companies are not going to give you free resources. Also getting the report without paying for insurance doesn't give you any protection as most tax liens, bankruptcy proceedings, lis pen dens and the millions of types of clouds can show up in the afternoon after the report was run. Only reliable source is to date down at closing and pay for the title insurance.
@Brett Costantino The bank was most likely unable to go to court in the past months. Courts are backed up more than two months since moratoriums here is what MAryland court says - it's still closed and imagine every case from February goes first
Bank is not going to lets make a new deal with you, they will take someone else's money. Typically a foreclosure is offered at the court steps and the bank cures the losses (taxes, insurance liens) if there is equity then they sell it often in bulk
I have a foreclosure under contract currently in Baltimore, MD and 2 days before closing the bank came back to us and said they didn't have the title yet and it could take up to 2 months. Is this common or is the bank just taking their time for some reason? Also, would it be appropriate for me to ask for a lower price because now instead of getting a renter in during the busy summer moving season I now have to wait until possibly mid fall?
If the bank doesn't have title yet I'm not sure why they entered into a contract to sell it yet. It's possible the borrower has objected to some part of the foreclosure process and either the bank's attorney agrees there was a screw up or the borrower is appealing the foreclosure. If you can you might take a look at the foreclosure file and see what the status is and decide if its worth pursuing the purchase.
@David A. a preliminary title report is of no value even if it was free to you I am saying. Why assume this is some trick? If you had an open order and relationship with TO you could get title insurance at the courthouse or sheriff's auction but you have to PAY for the insurance. This could be done through an attorney or escrow depending in if you are a wet or dry state, you need to set up account with funds to draw from. I am happy to answer your question in detail.
I would be trying to find out if the county the property is located in let's me view records online concerning the property. The best place I know to find out the quickest nationally is at netronline.com. I'd also be opening a pacer account. Pacer is for the search of bankruptcy cases. Usually, before a home is sold at auction the investors/note holders/note owners may have already entertained selling the note at a discount. Many servicers do this before sale. Many don't know who is doing what. Many entities are involved in recording fraud against many.
It makes the industry difficult for many. Foreclosure trustees who receive accounts for collection(refuse to get collectors title search machines!) Can you imagine calling someone demanding money, and not have confidence in what your able to tell someone? Could you imagine your employer at the acceptance of position telling you yes you have the ability to do xyz for xyz, and have it not be true?
I took my signatory signature pretty seriously with a fiduciary responsibility to represent the truth. That if I signed my name to a debt settlement or note sale that I had done my due diligence. As I often performed the managerial reviews at agency for best worked efforts before closing. I actually moved about $100,000 to $150,000 per month in recovery fees monthly for agency. This was for accounts that had been taken as a write off for whatever reason.
It's disheartening to be stripped of everything when you always attempted to treat others with the same dignity, and respect you'd hope to get out of someone. Everyone, needs many things to survive in this world. We all agree an education is imperative. Work ethic is a necessity as well. Everybody wants to be paid. But many are not in the business of building people.
How many times my boss would be like the client placed it here. They know it's here. NOW COLLECT IT! Usually I did to. But I always attempted to be honest, and fair. As it was my job to motivate you to pay me how much? I think I'd better be pretty precise with my 1st contact with you. A home or property is the most important asset many own. Yet the people who work to pay for the asset are not important to many.
How many times I'd have to call my employers client to HAVE ACCOUNT YANKED to AVOID LAWSUITS! The board of directors for the employer who lied about their written contractual ability to do things has been sued multiple times producing/enforcing fraud for just about every servicer in America!
Hell in my life they've successfully for over 80 years claimed my family never existed! Along, with make $200 million plus assets! Yet I'm the STUPID ONE! I never would have suspected so many involved in all of this. Be VERY CAREFUL. True law, and order against many is not what you hear, see, or read in many outlets. While many will claim we're supposed to have protection in courts many times it's not given. Benefit of doubt to tell the truth is unheard of for many. The reality of this life, and world is difficult without credible information! Can you imagine having to do a DNA test to get to the bottom of the many lies we're told?
In my opinion there is no need to start an LLC when you are first starting out. If you only have 1 or 2 houses the risk to you personally is relatively low and you will be able to get better rates with personal conventional financing. Start analyzing deals in different areas and then go look at them in person. See how the neighborhoods are, are there any board ups? Parked cars on the lawns? Commercial real estate close by? Talk to private money/hard money lenders and just get a feel for the rates. They are more than happy to talk with you as a potential client and answer your questions. Once you have an area and financing then talk to your agent and go look at the deals that make the most sense for you. Like Brandon Turner always says don't be afraid of the smelly ones as that's an easy fix. Know your numbers and make offers that fit into your numbers. Don't make a house fit into your numbers and don't get emotionally attached to any one deal. Enjoy the process!
I agree with Brett, I did not use my LLC for the property I purchased a year ago. I have the business so that I could acquire a property, weather it be a house or a commercial structure, so that I can operate the wellness center I am planning. Keep it simple for your first property. There are discussions on BP which make it clear that an LLC is a choice and not a mandatory position to take for RE.
Interesting subject. I have been working with borrowers doing refinances that are currently in forbearance. We are seeing more and more have to take this path as people are unfortunately losing their jobs. There will be advantages coming soon for those that have played this intelligently!
@Aaron Cieply that is one method. However on flips there are a lot of hard money lenders out there. They will find your deal and then fund the rehab costs at 100%. Usually the rate on the loan is cheaper than using the credit card rates.
However, if your organized, I like to use my Lowes my card. Depending on timing if you purchase X $’s, they will give you six months same as cash, so if you can complete the flip in less than that, you can pay the lowes card before you pay any interest. You can also do this with credit cards if they offer 0% financing for new card holders.
Usually, HML's require at least 640-660 credit and enough reserves to cover a certain percentage of your loan payments
@Gerald Jordan just one to think about with LLC's and using them. You can leverage credit lines through your LLC, the sooner you start using your LLC the more opportunities you will have due to seasoning.
Also, traditional banks will want to see the LLC active for 2 years in a lot of cases to handle some loans. Not always, but often.
Additionally, a lot of HML's will give you better rates based on the number of properties exited successfully. They will also want to find through an LLC, so it makes sense to just start using it.
I did not at the beginning, but I wished I would have.
One other thing to think about, is you can make people researching a property have a much harder time tracking you down for various reasons. This becomes important when you grow bigger and have a large portfolio. Very long topic, but you have to think about insulating yourself and family and not leaving a long paper trail behind. There are many experts that will talk to this and Whitney Sewell has a guest on a few weeks ago talk about the entire topic.
Is there a way to find people in forbearance who would be willing to sell before foreclosure 🧐 (some sort of database)
We don’t have a database, we find out via credit reports or the borrower themselves. I am also not aware of any database at this time. There may be a way to find it in some sort of title search software.
@Account Closed Chapter 7 is entirely dedicated to title review. It includes 17 pages that detail how to do this on your own using city/county records, what red flags to look out for, etc.
