All Forum Posts by: Curtis H.

Answered my own question. They can waive the termite inspection in escrow and make an amendment for the homeowner's insurance that it is my responsibility to get it outside of escrow. 

I think I'm good.

I'll be going to the escrow office tomorrow and they just emailed me asking if I got the termite inspection? I'm taking over Sub2, and it may be in the standard CA RE contract, but can't I just have them take it out? There is no new lender in the transaction so I would imagine that's not mandatory.

She also asked about homeowner's insurance, which I have not even thought about in the mad scramble to save the home from foreclosure. Does my policy need to be in place to close?

@Jim Sokoloff 

Thanks for the breakdown. I will roll with that. And why would I want the higher sales price, and what is considered long term? I may be in the home long term, but not this loan. The terms are not ideal. But I do like the fact that this loan is not in my name, allowing me to secure a loan to buy more rentals in TX. 

Hello all, 

Figured I'd start a new thread on this. 

So I am closing on a Sub2 deal I just did (my first one) and I think the seller's agent is playing with the numbers to raise his commission (after trying to extort me for 6%). My concern is I want the purchase price to appear as low as possible, as my transfer taxes and property taxes will be affected (since CA uses the sales price).

So here are the numbers...

Remaining loan amount - $460K

Lien to be paid off - $8K

Money to seller - $14K

So the realtor is arguing that all the costs above (plus some phantom costs) are the sale price. I think he actually added the title insurance or something else in there as well. He is claiming his 3% commission (which I am paying) is $14,878. Even with the numbers above, his commission doesn't come out to that much. I get $14,460.

So assuming I want him to shut up about his commission and just close the deal, could I just make the purchase price $460K, and the other items are separate? And give him whatever percentage of $460K that will still equal his original amount? That way my property taxes aren't jacked up artificially? Or am I looking at this wrong?

Also, this is a little out there, but I will be making a $25K payment to the bank immediately after closing..Now when I make that payment, the principal will drop a good amount. So if I were to pay the $25K first (but really at the same time) and have the new lower principal balance as the sale price (let's say $440K), would that fly? That is nearly $700 a year extra in property taxes between $440K and the $496K the agent is claiming is the final sale price. Even the numbers up top only add up to $482K. I don't get it. 

@Hattie Dizmond

Ahh you make me want to give you a big ole hug and move back to Texas! The mortgage lady was from Texas and she was AMAZING. I said you are from Texas aren't you? She says "was it the accent?" I said "No, you are so damn nice!" There is nice, and then there is Texas nice. I do miss that.

And you are right, I can't figure out how he's getting that number either....

@Hattie Dizmond 

Thank you Hattie. It has been a hell of a day. Don't think I ate until dinner, and was up at 6:30 ready to call the mortgage company. 

So in regards to the structure of the deal...

$460K left on loan I am assuming

$14K to seller to walk

$8200 Lien payoff

If I paid the agent based on these calculations, his commission of 3% would be $14,466. He calculated his commission at $14,878. I'm trying to figure out where he got that number from, and if he is supposed to be getting that much anyway.

@Greg H.  @Darrell Shepherd @Jay Hinrichs @Hattie Dizmond 

I have a contract in front of me!!!  THANK YOU BP! JUST NEED TO GET TO CLOSING!!

I have questions, but first an update...

Talked to bank for TWO HOURS nonstop. They were very helpful. They said (and I recorded) that as long as they get the money before the sale, they will stop the foreclosure. On top of that, I worked out a repayment plan with them to give them $25K up front instead of $40K reinstatement, and they basically are giving me a loan for $15K for 10 months. I'll take it. 

This will be signed tomorrow morning. And the minute we fax it back, since it's a repayment plan, it immediately stops the foreclosure. I will wire the money immediately after we close escrow. 

Call the RE Attorney to get a Sub2 addendum prepared by him that he uses for his clients. $300 for a word doc, but it was worth it later in the day when I told the agent my lawyer prepared it so it's legit. Shut him right up.

Call GC to inspect the house (plumbing, electrical, foundation, HVAC, etc.) He tells me "yeah you got lucky on this one. Good find" Enough for me to say I'm ready to do it. 

And then the damn drama...

Seller calls frantic saying they found a cash buyer and they want to back out of my offer. WTF!! I immediately know the realtor is up to this and it's all about his commission. Long story short, many phone calls and texts later, they decide to go with me as I just used my negotiating skills I learned from my Trump Style Negotiation book. I'll be damned they worked.

So I have the contract and before I sign it, my questions are...

How is the agent's fee calculated? Do the liens, seller walking money, title insurance, etc count towards the purchase price, thus raising the commission? Because that's what he was selling. I'm not sure if it's true or not. I never paid attention to that stuff. A house is listed at $400K, you say yes, and that's what he gets the commission on. But what is included in that purchase price?

Secondly, this home is Subject To, and it says "Buyer pays for termite inspection, sewage inspection, natural hazard zone report, wells tested for water portability"

Should I have him uncheck all that?

@Jay Hinrichs

Hi Jay, 

I do have somewhat of a relationship with a contact at the title cpmpany, but no transactions. So should I call them up and ask point blank how do I get the deed outside of escrow? This is where I'm lost. I will get the deed and pay the funds same day. But I will not pay and then wait.

@Jay Hinrichs

You are spot on my friend. I can't disagree with those comments one bit. My only question then remains HOW do i get the deed signed over to me without a closing. I have a prelim title report already from Chicago Title. Now i don't know how to read it but it has what I expect to have on there. The abstract judgement for the $8K unemployment lien. 

It reads...(names and account numbers changed)

A deed of trust to secure an indebtedness in the amount shown below,

Amount:
Dated: Trustor/Grantor Trustee: Beneficiary: Recording Date: Recording No.:

$387,000.00
January 9, 2008
John Doe, a single man
California Reconveyance Company, a California Corporation Washington Mutual Bank
January 15, 2008
as instrument no. XXXXXX, Official Records

An agreement to modify the terms and provisions of said deed of trust as therein provided

Executed by: N.A.
Recording Date: Recording No.:

John Doe, a single man and Jim Doe, a single man and JPMorgan Chase Bank,

September 19, 2012
as instrument no. XXXX, Official Records

An assignment of the beneficial interest under said deed of trust which names:

Assignee:
Loan No.: Recording Date: Recording No.:

Vericrest Financial, Inc.
XXXXXXX
July 23, 2013
as instrument no. XXXXXX, Official Records

A substitution of trustee under said deed of trust which names, as the substituted trustee, the following

Trustee: Recording Date: Recording No.:

Pine Point Lender Services, LLC
April 17, 2014
as instrument no. XXXXXX, Official Records

A notice of default under the terms of said trust deed

Executed by: Recording Date: Recording No:

Pine Point Lender Services, LLC
April 17, 2014
as instrument no. XXXXX, Official Records

10. An abstract of judgment for the amount shown below and any other amounts due:

Amount: Debtor: Creditor: Date entered: County: Court:

Case No.: Recording Date: Recording No.:

$4,100.91
Jim Doe
State of California, Employment Development Department March 1, 2011
Sacramento
Superior
XXXXXXXX
March 22, 2011
as instrument no. XXXXX, Official Records

Title No.: 111408470-MD

CLTA Preliminary Report Form - Modified (11/17/2006)

Printed: 07.13.14 @ 09:18PM CA-CT-FLAX-02180.055690-SPS-1-14-111408470

5

EXCEPTIONS

(continued)11. An abstract of judgment for the amount shown below and any other amounts due:

Amount: Debtor: Creditor: Date entered: County: Court:

Case No.: Recording Date: Recording No.:

$2,646.87
Jim Doe
State of California, Employment Development Department October 27, 2011
Sacramento
Superior
XXXXXXX
December 16, 2011
as instrument no. 2011-1710147, Official Records

END OF EXCEPTIONS

Title No.: XXXXX-MD

CLTA Preliminary Report Form - Modified (11/17/2006)

Printed: 07.13.14 @ 09:18PM CA-CT-FLAX-02180.055690-SPS-1-14-111408470

6

Note 1.

Note 2.

Note: The current owner does NOT qualify for the $20.00 discount pursuant to the coordinated stipulated judgments entered in actions filed by both the Attorney General and private class action plaintiffs, for the herein described Land.

In order to complete this report, the Company requires a Statement of Information to be completed by the following party(ies),
Party(ies): All Parties

The Company reserves the right to add additional items or make further requirements after review of the requested Statement of Information.

NOTE: The Statement of Information is necessary to complete the search and examination of title under this order. Any title search includes matters that are indexed by name only, and having a completed Statement of Information assists the Company in the elimination of certain matters which appear to involve the parties but in fact affect another party with the same or similar name. Be assured that the Statement of Information is essential and will be kept strictly confidential to this file.

Note: There are NO conveyances affecting said Land recorded within 24 months of the date of this report.

Note: If a county recorder, title insurance company, escrow company, real estate broker, real estate agent or association provides a copy of a declaration, governing document or deed to any person, California law requires that the document provided shall include a statement regarding any unlawful restrictions. Said statement is to be in at least 14-point bold face type and may be stamped on the first page of any document provided or included as a cover page attached to the requested document. Should a party to this transaction request a copy of any document reported herein that fits this category, the statement is to be included in the manner described.

Note: When this title order closes and if the Company if handling the loan proceeds through a sub-escrow, all title charges and expenses normally billed will be deducted from those loan proceeds. Title charges and expenses would include Title Premiums, any Tax or Bond advances, Documentary Transfer Tax, Recording Fees, etc.

Note: None of the items shown in this report will cause the Company to decline to attach CLTA Endorsement Form 100 to an Extended Coverage Loan Policy, when issued.

Note: The Company is not aware of any matters which would cause it to decline to attach CLTA Endorsement Form 116 indicating that there is located on said Land a single family residence , known as XXX Avon Street, in the City of Burbank, County of Los Angeles, State of California , to an Extended Coverage Loan Policy.

Note: The policy of title insurance will include an arbitration provision. The Company or the insured may demand arbitration. Arbitrable matters may include, but are not limited to, any controversy or claim between the Company and the insured arising out of or relating to this policy, any service of the Company in connection with its issuance or the breach of a policy provision or other obligation. Please ask your escrow or title officer for a sample copy of the policy to be issued if you wish to review the arbitration provisions and any other provisions pertaining to your Title Insurance coverage.

Note: In compliance with the new RESPA regulations, Chicago Title Company will be averaging recording fees for Single Family 1-4 Residential properties. Please contact your Title Officer to obtain the current recording fees. In addition, Chicago Title Company will pay our underwriter 12% of the title premium, as disclosed on lines 1107 and 1108 of the HUD-1.

Note 3. Note 4.

Note 5.

Note 6. Note 7.

Note 8.

Note 9.

NOTES

Title No.: XXXX

CLTA Preliminary Report Form - Modified (11/17/2006) Printed: 07.13.14 @ 09:18PM 7

=

Note 10.

Note 11.

NOTES

(continued)

Note: Any documents being executed in conjunction with this transaction must be signed in the presence of an authorized Company employee, an authorized employee of an agent, an authorized employee of the insured lender, or by using Bancserv or other approved third-party service. If the above requirement cannot be met, please call the Company at the number provided in this report.

This transaction has been identified as a "Short Sale" with pending negotiations on the below referenced Deed of Trust(s) and/or judgments or liens. To avoid any delays in closing, Chicago Title Company will require the following items for review and verification prior to the closing of said transaction and reserves the right to require additional information to clarify requirement should the need arise.

1. a) A valid and current demand(s) signed by Lender and acknowledged by Borrower with any amendments thereto. Should the due date of the funds be the same date as closing, the Company will require an extension from the short sale lender to confirm funds will be accepted should they be received the following day.
2. b) A copy of the negotiated Short Sale Approval Letter. The Company will also require written approval from the short sale lender should there be any changes from the pre-approved HUD and the final HUD prior to closing. This includes approvals for any additional funds brought to closing by Brokers or Buyers not listed on the original approval.
3. c) Should the aforementioned Short Sale Approval Letter contain any conditional language regarding the future transfer of said property, the Company reserves the right to request its elimination and/or modification.
4. d) A certified final HUD to accompany closing documentation for the short sale lender. Funds will not be disbursed until the final HUD has been submitted for review and approved by the Company's payoff department.

   END OF NOTES

The burning question I want to know is...

Is it common that a bank will NOT accept a payment for the reinstatement amount days before a sale? I mean they literally said you can't send it, or if you do we will sell anyway? That's what I want to know. I just find it hard to believe that two days after the reinstatement period ends, they will deny the money with the sale a full 3 business days away. Anybody had this happen to them, or know if it happening to someone else? 

And is it possible to close in one day with a title company if all the funds are in hand? Again this is a Sub2 closing, not involving a lender.