All Forum Posts by: Mitch Freed

How much do you owe on them? You could always sell them through a Lease Option...get a consideration up front to lock in a 12 or 24 month purchase price..drive up the monthly rent a few hundred higher than the current and offer rent credits if the tenant exercises the right to purchase. I would charge about 5% up front for the option fee which credits to the purchase price if the option is exercised. That is one way to sell them if you don't want to mess around with listing on the market.

Hi Robert, I don't see your email here. I suppose what I mean when I say equitable interest is if you have a property on contract with an option..and sell it to an end buyer with temporary seller financing...maybe a short term lease option...that would give the end buyer equitable interest in the property. Would title seasoning issues arise if the end buyer claims they have equitable interest?

Another hurdle is the buyers lender (if your end buyer is not paying cash) having title seasoning requirements. I've heard some talk of a way around this and it has something to do with equitable interest...anybody heard of anything like this?

Hi John, might you be able to elaborate on how to avoid the title seasoning. I have few properties under contract with a filed notice of option and I am sure I could market short term lease options to FHA buyers...how would one go about avoiding the title seasoning here? Thanks!

When taking title subject to...is there a specific way to make the monthly mortgage payments or would the investor simply send the previous homeowners lender a check along with the payment coupon? Does the lender care who the money comes from...or is it best to make payments out of an escrow account?

I am curious how a simultaneous close can be successfully done in a short sale...if the bank gives an approval at 100K...I find an end buyer at 130K...does the title company disclose or not disclose to the foreclosing lender that I closed previously at price of 130K and then am using 100K out of that 130K to close on my end...won't the foreclosing lender argue that they are entitled to the excess funds?

I understand the concept of a back to back closing...I operate with option contracts...negotiate to the point where I get an approved price...while at the same time marketing the property to an end buyer...since I file the option with the county I can enter into a purchase and sales with an end buyer and they can get financing set up...ideally both closings happen on the same day.

I have a short sale negotiation going right now with Litton. I started negotiations while the homeowner was in the bankruptcy filing process. Half way through the negotiations, before the BPO, the bankruptcy went through. Litton subcontracted to some company called Prommiss to handle the short sale negotiation. I asked Prommiss why this happened and they stated it was because of the bankruptcy. They are acting as an intermediary between me, the BK attorney, and Litton...compiling all documentation, ordering the BPO and submitting the package to Litton. I asked them how the BK affected the sale...they stated it really didn't. I asked them if anything special would have to happen for the home to be sold...he seemed to think once a price was agreed on the homeowner would have to file a "motion to sell." I'm not sure what type of BK was filed...but it hasn't frozen anything.

I asked the same question to my good friend who is a title agent on Friday and it looks like I may have run into a little roadblock with the double close...say i get the short sale approval and then transfer the deed so I can close with an end buyer....when I close with that end buyer I am now the seller correct? The foreclosing lender is going to require a HUD 1 sent to them along with the money...the HUD 1 will show that I closed with the end buyer and then used those funds to close the short sale. The HUD 1 will show the excess funds which I am walking away with. The banks approval letters clearly state that, in a short sale, any funds in excess of the approved price are their property. I haven't attempted a closing like this, but given the full disclosure the title companies are required to provide I am thinking the bank will reject my closing if the HUD 1 shows I am walking away with funds.

Jake, how is your title company handling this without witholding information from the foreclosing lender?

Furthermore, if anybody else has run into this little problem please let me know. Thanks!

Wheatie, I am curious about the situation of a double close (or simultaneous close) in a short sale situation...if one were to find an end buyer and a title company who would do the transaction...could one possibly take title subject to the underlying mortgage right after the short sale was approved..you would be on title when the end buyers lender pulls a prelim..then the end buyer could purchase the property with conventional financing because you are on title. In closing the underlying mortgage would be paid off and you would make whatever the spread was between the approved price and the price you sold it to the end buyer for.

Does anybody have experience with taking title Subject To the underlying mortgage. I just closed my first transaction like this and I am wondering what is the best way to make the mortgage payments? The note is still in the previous homeowners name. Should I open an escrow account and make the payments out of that...or just send the checks to the mtg company along with the payment coupon? Not too worried about triggering "due on sale" clause but would like to know what others thoughts are on making the payments.