All Forum Posts by: Belinda D.

@Jim Viens , got it, thanks!

@Jim Viens 

Thanks for the reply. I understand the short sale (thanks), but I was thinking that there might be another way for the bank to reduce or dissolve the mortgage, without doing a short sale, but I guess not.

When a relative of mine passed, there was an outstanding credit card debt. The bank eventually eliminated the balance of the card after some paperwork, etc was submitted to them. So, I was thinking that the same could be done regarding a mortgage debt of a deceased. Ok, I see the answer, ... probate.

I have a stupid question, but I want to learn. Is there any way that the attorney/executor can speak with the bank re: the owner being deceased and from there, work out some kind of terms/agreement/forgiveness of a certain amount or all of the mortgage, instead of a short sale?

@Toyin Dawodu do you care to share a skill that you used to flip only 3 houses in 2014 to make $248K?

Am I missing something here??

@Michael Williams , do your due diligence on the property. Public records/preliminary report should give some indication as to why the owner wants to quit claim. What is he not telling you? Quit claim is a no go.

If you are wholesaling, you need to know what "your" market is like in that area of "Georgia." If you are wholesaling, what percentage are flippers in the area buying at (60%, 65%, 70-75%)?

Get the correct ARV (be conservative, on the low side), the correct repair costs and the percentage flippers there are using. From that number, subtract the back taxes, your fee and closing costs (assuming your buyer will not pay closing costs). Also subtract any additional costs that the prelim. report will reveal. Is this final # equal to, less than or more than what the seller wants to walk away with? 

If the final # is less than what the seller wants, then see if he will meet you at that price. If it is not a win for the seller, yourself and the buyer, then thank the seller for his time and leave your contact info with him. 

Here are a couple of links that answer your question. If you want more details, then key in your topic in the "search" tab. 

http://www.biggerpockets.com/forums/88/topics/1499...

http://www.biggerpockets.com/forums/93/topics/8228...

Hope this helps.

Please take everything I say with a grain of salt. I am attempting to help until someone who has experienced this will chime in. 

At this point I see no valid indication that buyer #1 will not close. He is aware of the closing date???, you submitted both contracts to title, so it depends on how close to closing you are. Let the title company know your about your concern and see if they can reach him. Also ask them if you should record Memorandum of Agreement/Notice of Contract (I'm not sure what you call it in the USA). This will put a lien on the property. This way "if" buyer #1 is planning to go around you, then he will need your authorization to remove the lean in replacement for your full assignment amount. However, I am not sure if this is the route you should take. Again someone with experience can advise you better.

Another point that you may want to  included in your assignment contract is "full purchase price and assignment fee/consideration should be submitted by (... o'clock on ... 2014)". Two days prior to closing date should be good. This way if it's not done, then you know to reassign to buyer #2, while still having buyer #3 on the waiting list. 

Still keep in constant touch with #2, ask him if he can hold on until day of closing. He might not want to, but its worth a try. 

I am just speculating here, but what if #1 is a wholesaler stalling until they get their end buyer? Your Assignment contract should also have wording that does not allow that.

For all you know buyer #1 may not be the communicative and he is totally unaware that his lack of follow up is making you uneasy. As far as I know, a buyer is not contractually obligated to speak with you.

@Bill Gulley thanks.

Before marketing the contract did you submit it to the title company for them to open escrow? If yes, contact them to see if the buyer submitted any payment or informed them of anything. Always keep in touch with the title company until the deal is closed.

Was the binder deposit non-refundable? 

Your assignment contract should have a "non-refundable" deposit clause. I would go a step further and indicate that "Assignor will not accept an offer from assignee until after assignee does their own due diligence (with absolutely no contingencies) and submits the non-refundable deposit immediately upon acceptance of the Assignment. In other words you are letting the buyer know that you will continue to market the contract until he/she does these 2 things.

If your Purchase contract or Assignment contract does not indicate that you cannot reassign, then just continue to market it. However, you are not reassigning at this point. Let the 2nd interested buyer know that you may already have a buyer, but he/she can still see the property and you would like to put him/her  on a waiting list. Do this again for a 3rd buyer.

Just my 2cents.

Thanks Wayne.