All Forum Posts by: Tom Gimer

@Collin Luckett — Lot line adjustment or easement agreement. Former would be permanent while the latter could be temporary (as long as the barn or fences exist, for example) if desired.

The surveyor you just hired can help with the language required for either. 

I didn’t mean to suggest that conveying back to the seller was a solution. Just that some contracts and “escrow instructions” being circulated by certain gurus provide for it.

IMO that fix may come too late… the DOS cat is already out of the bag. Plus in some jurisdictions that can cost many thousands in transfer taxes.

FNMA (and presumably others) guidelines actually address the scenario. In some instances there are alternatives to foreclosure. Read more here:

https://servicing-guide.fanniemae.com/svc/d1-4.1-05/enforcin...

On the consumer side of the transaction I've seen contracts requiring a conveyance back to the seller and a restructuring as a lease option with payments mirroring the mortgage obligation and essentially a $0 buyout.

Not illegal. Both record owner and equitable owner need to consent to the new security interest. 

@Scott Trench Had a deal close last month with a combination of your scenarios/players. The seller was desperate and the buyer was a well capitalized pro. This is actually the more common situation, in my experience.

After signing but before the deed was recorded, the seller got scared that the buyer was a fraud, was not going to pay the mortgage and was simply going to rip the rents (as @Jay Hinrichs likes to say) and torpedoed his own deal by alerting the lender of the transfer! Seriously. And this was after the buyer had paid the mortgage current.

Proper sub-to contracts provide for significant liquidated damages in the event the seller behaves like this. Unfortunately this one did not.

Just got finished unwinding that deal.

That's correct. Pocket deeds, pre-signed deeds in lieu and similar cause big problems in the context of title insurance.

But what I am suggesting here is that a quitclaim deed in particular executed when that party doesn't have good title... grenade. Can't be fixed by various doctrines that govern.

So essentially, welcome to the lawsuit.

IMO re the $10k to seller being actual skin in the game... it depends on the current or potential rent, the type of lender, and the time and expense it takes to foreclose in the jurisdiction where the property is located.

Having an attorney involved with the sub-to closing is irrelevant.

If I was considering this realistically I would assume I am accepting $10k to have my credit trashed.

The fact pattern is missing WHY they would not insure. Nobody can answer the question as written.

Was the foreclosure completed without representation by an experienced local tax sale attorney?

@Cliff Durrett Just buy at the auction. It’s currently a mess but the f/c will clean it up. 

Fannie apparently can’t release the lien now but it can be extinguished as a matter of law through the foreclosure.