All Forum Posts by: Shannon Wright

Awesome, congrats!

I believe you can check Riverside permits online, too....

http://www.riversideca.gov/building/permits.asp

As an Escrow Officer, I do a lot of FSBO's. There are ups and downs, but I have never heard of an appraisal requiring an agent be present?

One suggestion I always make is: What about hiring an agent and having them get 1% just for paperwork and CYA purposes since no marketing is needed?

If you need any guidance, feel free to contact me and I can walk you through what I know to help you out. :)

That is not an option in Cali. :)

So, as an Escrow Officer, let me say "There are no "garbage fees", everything has a reason for the cost being incurred. Depending on the company type and the location, your rates will vary, some are regulated and some are not.

Having said that, you really don't have much choice so late in the game. I would suggest pushing for the estimate within the first few days of escrow and bug until you get one. When I was in Manhattan Beach, I was the most expensive EO out there and I very rarely had to cut fees, you get what you pay for. If a client did ask for a break, no biggie, I would do it since I get my premium on every other client. If they are not willing to help you, they are desperate for the income or just hard-headed and not customer service oriented.

Just like no transaction is worth my career (as in risks and bad decisions), a few dollars on my fee is not worth the bad rep around town.  I would often price-match in situations like yours, it is good business. Being reasonably negotiable is a part of customer service.

@Mario F., I am not advising you as to what to do, but I am telling you that most Escrow Law requirements (depending on who the escrow company is) limit our ability to release ANY funds in escrow without a mutual agreement that is active, not passive. There are very few instances that would allow this to happen, almost none actually.

Think of it this way, who am I to determine who the funds go to now that I am releasing them? There may have been an agreement 2 months ago about the release, but things change and it is not my job, as the neutral 3rd party, to determine if it is still "agreed" to and the proper course of action. We always need current and active agreements (signature or something in writing from the principal) from both side to change anything.

Also, the tenant relocation escrow if completely different and separate from the purchase escrow. LA City requires an escrow for every tenant relo including separate escrow instructions and proof of deposit of the required relo funds to proceed. Technically, the seller has to put the money into the holding escrow to evict the tenant because the seller is the owner of record. The only way you would be allowed to do it is after you close escrow. So, why would you putting $18k into the purchase escrow matter to the Seller? They are the ones who need to put the funds into the holding escrow. Are they going to ask you to pre-release it once you deposit it and "claim" they didn't know it had to be separate? Then, when you don't agree to pre-release, they cancel and hold your funds hostage? (This may not happen but I see a lot of bait and switch tactics by savvy, yet sheisty sellers)

Also, there is a minimum of 60 days notice, but I believe your tenant is considered "protected" and cannot be evicted. From what I have read, you can probably only raise the rent every year, at best. You should really put a call into the City of LA about the ability to evict, they are not hard to get on the phone.

@Jay Hinrichs 99.9% of my loan signings are coordinated by me, I don't think anyone is using them. Im going to look for them now!

Wait...in reviewing them, they don't appear to need borrower signatures. Only Broker / LO?

I have actually NEVER seen this form in loan docs before, but it is a good form to use!!

An ICA is always good with biz deals too, but very hard to get done.

As an Escrow Officer, I can tell you that any money "held" in escrow is not likely to be auto-released without a really well written CAR Addendum and Escrow Amendment.

Nothing for Escrow is passive, it is always active. Passive releases (passive cancellation, etc) are a slippery slope for escrow and you need to be very diligent on that matter.

@Dale Shin is right on the money about the LA City rent control requirements, and you will also need a separate escrow, not the same escrow as the purchase escrow. The Rent Control escrow will be a "holding" escrow, which is much different.

Maybe you have the option to raise rent legally and maybe she will leave on her own?

http://hcidla.lacity.org/system/files_force/documents/Allowable%20Rent%20Increases_English.pdf?download=1S

It looks like she is considered a "Protected Tenant" from the info on this post. :(

Protected Tenants

A landlord cannot recover possession of a rental unit occupied by a Protected Tenant (). A Protected Tenant is a tenant who has continuously resided in a rental unit for at least ten years, and is either: (i) 62 years of age or older OR (ii) disabled as defined in Title 42 United States Code Section 423 or handicapped as defined in Section 50072 of the California Health and Safety Code. A Protected Tenant is also a tenant who is terminally ill as certified by a treating physician licensed to practice in the State of California, regardless of their length of tenancy.

Application fees submitted will not be refunded, including when it is determined that a tenant is a Protected Tenant.

(http://hcidla.lacity.org/Landlord-Occupancy-Owners)

If the 2nd loan defaults, all benes are treated the same and they are all technically in "2nd position" as a whole. I have never seen a higher proportionate interest in 2nd position take priority over a lower proportionate interest that also in 2nd position via the same Note. All bene's would have to take part in a foreclosure or release action together, as one conglomerate....at least in my 20 years experience.