All Forum Posts by: Ibrahim Hughes

Originally posted by Steve Babiak:

Originally posted by Ibrahim S:

Thanks Steve but I got that. I was just wondering why it was important to show the encumbrances being paid by the seller as opposed to the buyer.

It is also more customary for the seller to be responsible for paying those, since the buyer had nothing to do with those liens being attached to the property. If I were buying, I would make the seller pay from their proceeds - .

Agreed. But depending on the seller, sometimes I like to market myself as paying those expenses. Some sellers like to hear that you will pay for them as opposed to the seller. Doesn't matter as the price is still the same. If I'm buying a property for $100k where the seller will net $25k, I will simply tell a seller who wants the buyer to pay the expenses that I will give Mr. Seller $25k and pay all expenses providing my total costs doesn't exceed $100k. I'll even add those expenses to my side of the HUD so that the seller doesn't freak when the closing agent explains that he's paying for this and paying for that when I told him otherwise.

Welcome to BP Keisha. I'm also a fellow Dirty Jerseyan (they don't call us 'the armpit state' for nothing - LOL). I've heard a lot about NJRESN (new kids on the block).

As an Investor and Realtor with 10 years of experience in the business, I invest and volunteer (youth mentoring) in my farm area. I'm sure we'll eventually cross paths. Good luck with everything.

Ibrahim

Karim it depends on your state and county and whether or not their records are online. Here a "full title search" would include a lower court search (judgments, lis pendens, etc.), an "upper court search" (bankruptcies, federal liens, etc.) as well as up to date municipal charges against the property. I think it's always a good idea for investors (and realtors) to know how to do "preliminary" title searches (PTS) to know if (or confirm) a particular property has equity or not. But by no means would I rely on my 10 years of experience performing these searches to buy a property via quit claim deed. Perform the 'PTS' and then hire a professional and purchase the insurance policy.

Thanks Steve but I got that. I was just wondering why it was important to show the encumbrances being paid by the seller as opposed to the buyer.

Why is it important that the HUD shows the encumbrances be paid by the seller?

I'm in the process of investing in FL while I live in NJ. I found a great Realtor on Trulia.com

Here are some tips for that site:

1) Don't use 'avenue' or 'street' in your query. Just put '134 Broad'.

2) Sometimes you can just put the number '134' and get all of the properties with that number on it. From there you should see your property on the list.

3) You can also take note of the two properties on bothg sides of the subject property and look those up. This will give you the block your house is on. Then back up and instead of putting a number and street just put the block number to get all of the houses on that 'tax block'. Yours should be on the list of properties that come up.

Clarification NJ. They're ALL hit and miss imo. The only way to really get accurate up to date ownership and encumbrance info (besides being at the closing :) ) is at the county recorder's office (not aware of a 'county tax office' in NJ, just a county tax board). I usually print out the sheet from njactb and take it down to the county to confirm. Everyone (mls, municipal tax assessor, njactb.org, etc.) gets their info from the county recorder's office.

Curt and Bill, why would you say that she is wasting her time trying to assign a preforeclosure? If there's enough equity there, why not???

Nope, nothing like that with this archaic state (as far as I know). Unlike many other states, NJ (with the exception of maybe Union co.) doesn't appear to have records online that show a property's encumbrances. The closest you will get is www.njactb.org for tax and ownership info. However, this is not necessarily accurate and up to date. You will have to personally visit the county and confirm up to date ownership.