My Seller can't come to closing

14 Replies

Hi BP I have a seller who wants me to take over her payments. She owes around 94K and payments of $962. The house is occupied and tenant has been there for 5 yrs. She charges 850 in rent. The value is between 98 and 120. Payments are current. She has made improvements and I believe that I can' raise the rent to at least 1k with a lease w/option if the tenant does not want to stay and pay the increase in rent. The seller is ill with a chronic condition  and cannot travel to sign any documents so I'm a little stuck. Do you think I should fed ex the docs to her to sign or travel to Florida? Also, what docs should I send if I fed ex them? I'm in GA and she is in Fl a 4 hour drive. She said she is willing to deed me the property and I am not sure what kind of agreements should be signed.  Seeing that she just wants me to take over everything, do I even need her to sign a purchase and sale agreement at all and use a attorney because she can't travel. I just want to make sure I do this right. Georgia is an attorney state so I would have to close here but, seeing that she lives in Florida I'm not too sure how to handle it.

I would get the help of a title company if I in fact wanted to do this deal.  You're paying every month to take over this property.  Tenants and toilets are tough.  Paying for the privilege is not something I would ever do, especially at full market value.  

But if you do decide to move forward, I would seek legal advice from a competent RE attorney in your area or at least a title co who can run a title search for you and get you a proper deed to overnight to your seller.  Hope this helps @Patricia Mclean !

Originally posted by @Patricia Mclean :

Hi BP I have a seller who wants me to take over her payments. She owes around 94K and payments of $962. The house is occupied and tenant has been there for 5 yrs. She charges 850 in rent. The value is between 98 and 120. Payments are current. She has made improvements and I believe that I can' raise the rent to at least 1k with a lease w/option if the tenant does not want to stay and pay the increase in rent. The seller is ill with a chronic condition  and cannot travel to sign any documents so I'm a little stuck. Do you think I should fed ex the docs to her to sign or travel to Florida? Also, what docs should I send if I fed ex them? I'm in GA and she is in Fl a 4 hour drive. She said she is willing to deed me the property and I am not sure what kind of agreements should be signed.  Seeing that she just wants me to take over everything, do I even need her to sign a purchase and sale agreement at all and use a attorney because she can't travel. I just want to make sure I do this right. Georgia is an attorney state so I would have to close here but, seeing that she lives in Florida I'm not too sure how to handle it.

She's definitely in the negative if her mortgage payments are $100.00 more then rent... 

My advice is to find an experienced r.e. attorney to handle this on your behalf. They can draw up the P&SA(purchase & sales agreement) and handle the faxing / emailing  with the seller. They may also be able to handle the title search all the way to closing. She won't have to be at the closing table. Since you aren't experienced you definitely need legal assistance here.

Kudos,

Mary 

Hopefully there's a typo in your numbers somewhere.  If so, or you still for some reason want to close, just tell the Title co or attorney that seller won't be there and let them sort it out. 

Patricia:

What is your exit strategy on this home? You have no margin for error with those numbers. Are you planning to keep it as a rental? Where do you see yourself making any money on this deal? I would think long and hard before diving in AND I would enlist the help of an attorney and/or title company to make sure you are keeping everything legal. You don't want the seller to come back (after she is better) saying she was not competent/coherent at the time to make the transaction valid. There are many pitfalls here. Tread carefully.

Originally posted by @Steve Vaughan :

I would get the help of a title company if I in fact wanted to do this deal.  You're paying every month to take over this property.  Tenants and toilets are tough.  Paying for the privilege is not something I would ever do, especially at full market value.  

But if you do decide to move forward, I would seek legal advice from a competent RE attorney in your area or at least a title co who can run a title search for you and get you a proper deed to overnight to your seller.  Hope this helps @Patricia Mclean !

Why would you buy that?  You would be losing money.

I sold property to out of state buyers who did not come to closing, but it was a traditional sale.  The title company followed the proper protocol.  The buyers needed to get everything notarized and FEDEX'ed.  I should note that I had a signed PA.

If you still want to do it, get with your title company to complete the transaction.

First, maybe I missed something in the numbers but I don't see a deal.

Second, you don't need to be present to complete a closing.  The title company can fedex documents, seller can have them notarized and fedex back.  I did a closing 2 months ago where the seller was in Italy, no big deal.  

Originally posted by @Account Closed :

@Patricia Mclean Ignore the unsolicited advice, If you like the deal then do it! Contact an attorney tho.

 Yeah, absolutely!  Just do it!  Here, hold my beer...

Patricia, I strongly suggest you contact Brian Gibbons, the BP resident expert on lease-options, and ask him whether there is a deal here.

  • You have a house that is UPSIDE DOWN
  • You are not local
  • You are listening to a desperate seller telling you value.
  • There is no cash flow.

DO NOT buy sub2.

Maybe a long term lease with option then assign.

  • You need to walk through the house.
  • And DO NOT do sandwich lease option.

Look here at my BP blog. 

http://www.biggerpockets.com/blogs/3-reiskills-and...

PM me if I can help.

Thanks

@Richard C.

@Steve Vaughan

Originally posted by @Steve Vaughan :

I would get the help of a title company if I in fact wanted to do this deal.  You're paying every month to take over this property.  Tenants and toilets are tough.  Paying for the privilege is not something I would ever do, especially at full market value.  

But if you do decide to move forward, I would seek legal advice from a competent RE attorney in your area or at least a title co who can run a title search for you and get you a proper deed to overnight to your seller.  Hope this helps @Patricia Mclean !

I voted this post and quoted it for one reason - FMV.

This isn't something you should be doing at FMV because the deal is flawed at the beginning. If the seller can't get to the closing, they automatically lose money. The question is... "how much".

Good luck, and if your first offer is accepted... you offered too much.

@Patricia Mclean   I rarely if ever go to a closing.. its kind of funny the east coast title companies or lawyers will call me for an appointment... Usually at 5 am because I am west coast.. and want to know when I will be there... I just laugh and say not possible from Oregon.  Its called a mail away closing done all the time.

open with title company have them hire a mobile notary if you can't get the seller to go to her bank for notary.   no sweat I close all over the place.. only issues I ever have are if I am in Maui or something and its a state that requires a witness on the deed.... that can be challening

@Patricia Mclean Why do you want to buy this property? Looks like you are trying to solve someone's problem, which to me is amazing. You can probably refinance it and get a better interest rate, lower payment. You also could be buying the property for appreciation, in 5-10 years it will be worth 50K more? As long as you know why you are buying the property and if it makes sense for you, go for it. 

Everyone else is correct, allow an attorney to handle all the paperwork for you. 

Cheers,

Damir