All Forum Posts by: Douglas Snook

They are frustrating to deal with. Even if you are the high bidder they may reject it and start over. I have seen the same property listed multiple times multiple ways. First an auction then a buy it now price, then an auction etc.

Thats not to say it can't or won't workout just don't be surprised if it takes a awhile. Be sure to visit the property if you can. Don't just rely on the listing. I have seen wrong bedroom counts, no garage mentioned when there was one etc.

If it looks like the numbers will work for your situation, pursue it. whats the worse that could happen? You get a great deal! or you are back where you started with no deal

Thats my two cents. Best of luck

While I do not think you should play matchmaker either. Be firm with him that you are not playing matchmaker and he is responsible to pay the full months rent. Be clear with him that even if he finds someone, the new person still has to do an application etc. It is almost March 1 I doubt he could either find someone to move in or he could find a place by then to move to. If he does not pay the full rent by what ever deadline you have in your agreement, start the eviction proceedings. If he comes up with someone that meets the criteria for say April 1, fine, maybe cut him a break for one month. Thats up to you. 

If you are in a hot rental area cut your pain now and tell him he' got to go to

Jay

MA is one of 3 or 4 states that pretty much require an attorney to conduct the closing. We do not recognize "witness closings" where just a notary shows up. It is all considered practicing law without a license. The Real Estate Bar Association is pretty vigilant on this.

What would normally happen is Robert goes to the mortgage company or bank for a loan. He works with the loan officer who would assign the mortgage to an approved attorney (usually a friend) or he could tell them I am his attorney and it would come to me if I can be approved (write for a national title company, have malpractice etc) I order a title exam from third party title examiner. They provide me with copies of the relevant documents (deeds, liens on property etc) that is on record at the registry of deeds. I order a Municipal Lien Certificate from the city (confirms if taxes are outstanding as well as water, betterments etc) I used to do the title exam myself but the national title company want a third party because they would also have malpractice if anything is missed) I review what they send me and make a judgment as to the marketability of the title or if there are any other issue so the mortgage company is in first place (so I would order pay offs of any current mortgages or judgment liens, etc)

Most of the registry of deeds info is available on line so I can double check or do a preliminary search (or anyone can search for that matter) As for getting copies on line, you usually need to be registered and have an account because they do charge by the copy. Nothing stops you from visiting the registry oneself and ordering copies or looking at the documents though.

I pull all they infor together and create the HUD or now the TRID or whatever they are calling it. I tell they buyer/borrower how much to bring to the closing. The mortgage company wires me the money. I meet the buyer and seller at the registry (usually on a sale) Everyone signs everything, I notarize. I then go to the counter and do a last minute up to date title run down. If it is still good, I record the deed and mortgage and anything else needed. I have written the checks from my account. Later I will wire or overnight any pay offs and track to be sure any discharges are recorded. Also later I will issue the title policies for the lender and buyer and send those out. Forgot to mention will also wire or give the seller a check for their proceeds.

So in this case, if I was representing Robert, I would examine the title and make him aware of any defects, double check taxes and water etc from the city. I would review the terms of the note and mortgage with him to be sure he understands and agrees. Make sure the deed and mortgage are recorded properly, any liens discharged. Since I write for a national title insurance company, if he wants a buyers title insurance policy I would get him one ( and the seller/mortgage holder as well)

Oh yeah if he needs an offer or  P & S negotiated I would do that too.

All just in a days works for a closing attorney here in MA!

Jay has set it out fairly nicely! If the seller is financing then the terms are whatever you both agree to. So you need to find out what those terms are. Does he have a mortgage and/or note that he wants to use?  If not, I have one. If so he should give you a copy ahead of time. I can review that with you no problem. Does he have a lawyer that is going to do the closing or is that something you would be looking to me to help you both out with? Again, no problem assisting you with that.

You definitely want to know if the property is going to be free and clear and what your costs will be. A lot of this will then be spelled out on the HUD or other closing form.

Why is he offering seller financing? Are you unable to get a conventional loan yourself or would the property not qualify?

As for converting to an FHA loan, is there a reason you are not starting out with one?

feel free to contact me so we can discuss further

The price seems a little high for a flip. How much work does it need? What would the value be all fixed up?

What if you lived there? You may be able to get a conventional first time home buyer's loan (lower interest, low down payment) Then fix and sell or rent in a year or two.

As far as funds, what if your grandmother did Seller financing or took back a small second mortgage? She may want to speak to a estate planner or elder law adviser to see if she can protect or preserve the asset. Is she going to a nursing home? Is this her primary residence?

What if she "sold" it to you now and took back the whole amount as a mortgage? Then you could see about getting hard money or a personal loan to do the fixing and sell it in 90 days or so and pay her that way and maybe make a little for yourself. (I would look at this myself rather then hard money from a stranger)

I guess the bottom line is it could be good for you but more information is needed.

feel free to contact me. I have done a few deals with a business partner for private lenders (as well as national mortgage companies)

We can do a phone conference or even meet for coffee/lunch etc

I would let it go the few extra days especially if she has been paying rent regularly and otherwise a decent tenant. She apparently has a place to go but most likely can't get in until the first herself. 

 She gave you notice that she was leaving by the end of the month but then asked for a few extra days. She has been there five years. I would go on March 4 and confirm she is out, take pictures of the condition of the apartment and makes plans for a rehab, even if just paint. If she is still there on the 4th then I would take additional action whether it is to tell her she owes the months rent or charge per diem or simply start the eviction process.

Bottom line is it all depends on if she is really out by the 3rd.

Frank

You absolutely need to talk to a LOCAL attorney who knows real estate law to explain to you what you have.

For example, in MA, a HOA can obtain a superior lien on the property ahead of a mortgage under certain circumstances. You may only be buying the HOA's position or AZ law may allow them to "foreclose" and wipe out the mortgage. Thats why you need someone local and familiar with AZ real estate law

Good luck!

Originally from Everett. My folks still live there. Have been joking about having them open a "bed and breakfast". Have my father drive people to and from the casino while my mother does the cooking. After all, at one point there were 9 of us living at home. They are retired and it will gibe them something to do.

Seriously though, I wonder myself. I don;t think it turned out too good for Atlantic City residents but I think this is a different situation. Boston is already a tourist area and this will be another attraction. I hope that the values stay or increase, at least if you are away from the congestion in that end of Everett. Cities a little farther away should be OK, like a Saugus or Wakefield I would think there would be no impact there.

Just my two cents

I would think an advantage for them would be that they keep the loan rather then have you refi with a competitor and loss it completely. 

Who is going to pay the closing costs? What will the terms be? Same as now as far as length etc. How much lower would your monthly payment be? Can you refi some equity out, if you are interested in doing that.