All Forum Posts by: Tom Gimer

Short of a perpetual easement, a letter agreement granting permission to the neighbor to install and maintain the fence would negate a future adverse possession claim. No land lost, fence gained.

Another possibility would be lease option with price of the option covering the anticipated holding costs during option term.

Quote from @Wayne Brooks:

I just noticed, you said "loan mod company", as in a loan mod Not directly with lender? Red flag for me. Do Not take title until a Permanent loan mod is Recorded in the PB county records, Clerk's website.

As Wayne pointed out, taking title before the permanent modification is recorded would be a REALLY bad move. The lender would discover the change of title, the proposed mod would be unsecured if recorded and the existing mortgage would likely be foreclosed right away.

I had to dig deep for that. Not sure about VA but it would not surprise me if similar guidance exists.

The contract can also clearly state IN BOLD CAPS that the buyer is an investor whose goal is to make a short-term profit by assigning its contract rights privately or by public auction or otherwise.

Disclose.

Without the contract etc. all we can do is talk hypothetically. So if something like this happened to me, I would do the following immediately.

Send/deliver a letter to the "buyer" (with proof of delivery) advising that the contract is void due to his fraud in the inducement (cash buyer without cash); that I am preparing to file a lawsuit for slander of title (and other causes of action) and pursuing compensatory as well as punitive damages; and that unless the cloud is removed within X days, I am contacting the attorney general of the state as well as the real estate commission to report the fraud.

If the cloud was not timely removed, I would hire an attorney and do exactly what I said I was going to do.

Nobody can answer this without seeing the contract and every other document and communication regarding the transaction. There are ways to get through this including flipping the script 100% and putting the wholesaler on defense but you’ll likely need an attorney.

@Christopher G. Research California's controlling interest transfer laws (LEOP). The initial transfer to a wholly owned LLC should not trigger but the final transfer of the membership interests to an unrelated third party sure sounds like a triggering event to me.

https://www.boe.ca.gov/proptax...

Quote from @Paul Defngin:

First off, sorry for your loss. 

Second, I kind of agree with @Tom Gimer but you have some challenges if the home is not going to be your primary home, meaning, you are not going to move into it and make it your primary home. And I would understand that is not the case, if you do have your own primary home. 

Here's why the scenario of getting a line of equity against it may be challenging if it's not your primary home.  There are few lenders that will extend a line of equity on an investment property and when you find them, they usually will only lend up to 75% of the value of the home less the outstanding 1st mortgage balance. Based on what you noted, your mom owes $249K (most likely the payoff should be a little more than that with interests) and and you estimate the property value at $348K.

That means that you have about $98K-$99K in equity in the property. Half of it is yours and half is your sister's, if you both agree to split them 50/50. If you go to a bank to borrow the $49K (50% of 98K of the equity); that will put your loan to value above 85% ($249K 1st trust + $49K HELOC or HELOAN / $348K value). And as I noted above, this would be very challenging, if again, this is not your primary home.

But if you do not have a primary home of your own yet and you make this your primary home, you can do the HELOC up to 95-100% if really needed on the property and then buy-out your sister. Although the lender that is going to extend the line to you may have their own overlays and push back on the fact that the existing 1st trust loan is not in your name, etc.

Additionally, if you make the condo your primary home, you could always refinance the 1st trust and pull out the $49K to buy-out your sister's interest, and it'll still be considered a rate and term and not a cash-out transaction. Yes, you'll lose the 3.49% but, hey, you'd at least get to keep the home 100% as yours and get the funds to buy-out your sister. 

All that said, if you have money in other accounts that you can just buy your sister's interest outright, that will be the best scenario and you keep the 1st trust loan at 3.49% intact. You'll just have to pay your sister out of pocket from other resources that you may have. Good luck and if you have any questions feel free to reach out. 

Per the title of the post, the property currently has a $80k mortgage. If it's worth $350k the sister's ~$135k can be bought out with a 2nd and the property will still only be leveraged at ~62%.

@Akshay Wattal I'm not surprised that is what was said. They are hoping creditors will simply throw their hands up and say well that's it, no point in pursuing this further. The decision to bring a lawsuit against the entity (which obviously did not die) or pursue the principal via a claim against the estate is simply a business one. Does it make sense to spend $ to chase this debt or no? Avvo.com is a good source for consumers to find local attorneys and practice areas.