All Forum Posts by: Tom Gimer

First things first... did you receive a closing protection letter?

IMO the best investor contracts are short and simple enough so as to not be intimidating to sellers, but comprehensive enough to include all the necessary buyer protections and local requirements.

@Michael Morrongiello Oh I know the agreements and the documents used in these transactions. My issue is that a bank/banker should not allow a POA to be used to benefit the agent. The important language in your reply is "on their behalf" -- redirecting the principal's funds is not acting on their behalf.

Seems to me the smartest/easiest way to deal with lender escrow accounts is to have that feature eliminated from the loan ASAP in the subto process... preferably immediately after an annual tax disbursement reduces the account balance to a low point.

But yes, when the principal dies so does the power.

Yes, an entity can be appointed as attorney-in-fact for an individual.

My concern about the above... an attorney-in-fact depositing the funds of the principal into their own account would be an obvious breach of fiduciary duty.

Was the full purchase price paid to the title company, or just the taxes?

If the latter, both buyer and title company may have just created major problems for themselves.

@Alan F. Had 1) an assignment or 2) an entity acquisition been possible rather than a (fat) double-close, this would now be the end buyer's problem. And there would be no unanticipated holding costs... the insured could just let the insurer cure the defect once discovered, if ever.

I'm amazed the title company actually did more title exam work and discovered their recent error in the small gap between the two closings. That's just bad luck... not really something DD would catch.

All I said was that I was following this thread to hear how trying to save a few $ works out. 

@Peter Walther may chime in

Following to hear how skimping on the expenses involved in a true double close works out.

I doubt a hold-open or a binder provides the coverage that will be needed here. And lost “profits”??? lol stop 

I have actually fired clients for trying to close on the A—>B of a double close without title insurance. No, not just for being cheap… for being stupid. 

Always get monetary concessions... never rely upon a seller to do anything after closing, unless you want it done half-assed and on the cheap.

If the lender has not foreclosed or taken a deed in lieu, then the seller is the current owner which is the BK estate. I’ve handled the sale of plenty of properties by BK trustees. if the court believes the price is fair and there are no objections, the court approves the sale. Notice I didn’t suggest that max retail value is the standard. 

You can review the entire case history including actual filings on PACER.gov

If these properties are now REO you need to find the listing agent.