All Forum Posts by: Tyler Sterns

There shouldn't be any legal issues with you living in the property. However, one of the main advantages of living in the unit is that as an owner occupant you will have a better chance to get traditional financing,lower interest rates, potentially lower taxes, etc. If you purchase with an LLC you may not get those benefits. Are you planning on using hard money? If so many hard money lenders may not want to lend to you if you are an owner occupant.

Recording taxes vary widely among states. There may be recording taxes for transfer ownership of depending on your states laws.

You would most likely have to sign the note individually as well. If you are purchasing in your name make sure you have liability insurance. Another thing to consider is that if you purchase as an individual, depending on your jurisdiction, there may be recording taxes when transfer from yourself to the LLC.

Buying a property with a quit claim deed from a stranger on Craigslist is a terrible idea. A quitclaim deed means that he is conveying you whatever he has, if he has nothing you would be conveyed nothing, and you would have no recourse. 

Are you in first position? If you are in first position and there are no other liens on the property you could potentially do a deed in lieu. As someone said earlier, the price of a foreclosure is going to differ vastly depending on if you are in a state that does judicial or non judicial foreclosure.

 A foreclosure law firm would probably charge you more than they would a bank. Because of the volumes of foreclosures that these firms do for the banks, the banks typically get a discount. The foreclosure law firms charge a flat fee for the sale then charge hourly for any additional litigation. The rates are set by Freddie and Fannie. A foreclosure law firm would almost certainly charge you by the hour for the entire process. One thing to consider is that if there is equity in the property you may be able to count legal fees and costs associated with the foreclosure against the foreclosure auction price. But that would only matter if there was equity in the property.  

There is no need for an attorney to create an LLC. It is just filling out forms on the state website. You should however look into hiring an attorney to draft the operating agreement.