All Forum Posts by: Brian Erlich

I have an estate home under contract at a price that doesn't cover all of the claims.  There are 2 FIFA Liens on the property, several unsecured claims, and the home is in foreclosure.  I assume we need to go through probate with the estate to satisfy the deceased woman's debts in order to purchase the property.

Is that correct?  How would that work?

Any tips to help us successfully purchase the property through the probate process and avoid an auction would help a lot.

Thanks

My situation:

I have a pre-foreclosure under contract for what is owed on the mortgage, taxes, and HOA fees.Â

I just discovered that there are two FIFA liens on the property, the first from Capital One and the second from Discover Card. The liens were placed on the property in 2008 and renewed in 2014.

The home owner has passed away and I need to get these liens cleared up before I am able to complete the purchase.

There is some time pressure, for me and for the lien holder, because the home is currently in foreclosure.

My Questions:

• How can I go about getting these liens removed?
• If negotiating the payoff, do you know what percent discount of the balance that I should be able to achieve?
• How long does it usually take to settle?
• What is the best way to put pressure on the lien holder to settle low?

Lou,

I have never done a deal quite like this before, but one thing that comes to mind is that you should define how and in what order things get paid.  IE costs first, investment second, and profit third.  Always better to do a good job of defining the things that are unique to your situation even if you use a standard agreement of some sort.

@Joseph Chan, I am curious why you would want to try and catch the agent lying about multiple offers.  An agents job is to get the best price for their client and some agents lie all the time (Some are also very honest, so no disrespect intended). 

I have also had the feeling that the agent wasn't communicating with their client, but I cannot control this, so I don't worry about it. I worry about what I can control.

My process is to make an offer that I am comfortable with and be willing to lose the deal if someone outbids me.  If the agent asks for my highest and best offer, I have the choice of re-evaluating and raising my offer or not.  

If I feel the client hasn't been informed of my offer, I can send the property owner a letter or stop by, but I am not sure that this is really helpful.  Over time I may even get to know who the unscrupulous agents are and consider their request for a highest and best offer in that light. 

It is my understanding that this is a numbers game and that it can be frustrating at times, but adding the frustration of fighting with the agent or trying to catch them lying just doesn't seem worth the effort.

Thank you @Aaron McGinnis,

I can see where, as a GC, this would be challenging.  As long as the GC is responsible for everything and reputable, according to your post above, you have a fair point.  I guess I have been involved in too many jobs where I was coordinating the work and as you know, subs can be very challenging to deal with.

Thank you @Aaron McGinnis,

I can understand your point.  My advice comes from an experience with plumbing sub who left with over $20k of supplies and fixtures.  He was doing some work for my father.  The only way I can think to defend against this type of thing is to be involved in the material purchase or to make use of a completion bond.  Do you have another way to minimize exposure to bad actors?  I wouldn't want to offend the people I work with, but I wouldn't want to be taken advantage of either.

Thanks

I need to start by saying that I am new to BP and no expert.  That said, I would pay for materials separately from labor.  I would also buy the materials as they are needed and store them yourself to minimize the risk of theft.  As far as labor, Set milestones for your project and at the successful completion of a milestone that portion of the payment could be made.  Always inspect prior to making any payments.

Also, A higher cost lower involvement method would be a completion bond.

I hope this helps

My situation:

I have a pre-foreclosure under contract for what is owed on the mortgage, taxes, and HOA fees.

I just discovered that there are two FIFA liens on the property, the first from Capital One and the second from Discover Card.  The liens were placed on the property in 2008 and renewed in 2014.

The home owner has passed away and I need to get these liens cleared up before I am able to complete the purchase. 

There is some time pressure, for me and for the lien holder, because the home is currently in foreclosure.

My Questions:

• How can I go about getting these liens removed?
• If negotiating the payoff, do you know what percent discount of the balance that I should be able to achieve?
• How long does it usually take to settle?
• What is the best way to put pressure on the lien holder to settle low?

@Jay Hinrichs, Thank you for explaining.

@Jay Hinrichs, How do I arrange to buy the note from the bank?  My wife and I had discussed this as a way to acquire properties, but didn't know where to start.