All Forum Posts by: Account Closed

Short answer: yes. Had to provide receipts and contractor invoices for my last project to show the amount of money I put in the job. But not to the level of detail that they are seeking from you. Make and model of appliances shouldn't matter, for example. Once provided it, there wasn't an issue and lender agreed not to share info with buyer (reading between the lines, that seems like your real concern - and it was mine as well). They are just looking to paper the file in case there is a buyback claim from the purchaser on the secondary mortgage market.

Thats generally accurate if the diligence period hadn't closed.

Did you get any earnest money? I would look into ways to retain it as compensation for extra water expense.

The property becomes an REO and the lender lists it on the MLS. The key is finding the small percentage of properties with equity, i.e. the loan amount is less than FMV.

I assume this is a buy and hold, since you are planning to refinance in a year. In that case, many people would say that the 70% rule is less relevant and you should be more focused on cash flow, etc. To answer your question, my understanding is that the 70% factors in hard money costs for a six month hold period, so, no, you would not need to subtract interest costs from your offer. But that goes back to the issue with your anticipated one-year hold period...

To more directly answer your question, I know of no way to find these properties before they are publicly advertised for sale...the process typically starts with a certified letter to the borrower notifying them of the default, so unless the asset manager calls you directly, there's no way to find out about the potential foreclosure before the ad is placed. However, you could go back and look at old ads and cross-check that list against the properties that actually sold. Many times a borrower will cure one default or the bank will pull the sale for whatever reason, and the property will subsequently come up for sale again.

Don't know how the trustee/foreclosure sale process works in Snohomish County, specifically, but in Georgia, the sale has to be advertised by publishing a notice of sale in the designated newspaper/legal organ for a specified period of time (four weeks in Georgia, I think on Tuesdays or Fridays, although everything is online). I would google around to see if the lists are posted online by the county or if anyone is selling a monthly list, and if all else fails, buy the newspaper.

It's a fairly time-intensive process to individually vet the listings (I doubt 10+ acre tracts come up for sale all that often), so if you're tech savvy you may want to set up a way to "crawl" the listings for selected keywords, assuming they are online.

Seconding what Jacob said, if you are splitting the profits in thirds, you should also share the losses/risk in thirds, i.e. you and the agent pony up 1/3 each of any losses to your money guy.

This is not a question that should be looking for answers to on the internet...you need an attorney.

If it's a close question, do granite, in my view. It's not that much more expensive relative to the pop it has with buyers.