All Forum Posts by: Jason Krick

@Tom Keith

Thank you.  Yes.  I want to close.  The deal is too good not to.  A lot of what I wrote is not what I "expect" to happen.  I am the type of person who likes I be prepared in the event something unforeseen happens.  I want to use this broker and this policy, but I need communication to do so.

It sounds like this would not be as big of a deal as I was worried it could become.

@Marcia Maynard

Thank you.  That's exactly what I was hoping to hear. I was sure I wasn't the only one who went through something similar

@Jeff B.

Maybe I didn't explain myself properly.  We are set to close in two weeks.  I'm asking the question based on what would happen, insurance-wise, if the foreclosure was done improperly.  

Obviously, they cancel the policy, but am I liable to pay the premium for coverage of a property I wouldn't own?

Again, I plan to close in two weeks.  I have other options for insurance, if needed.  The sticking point is that the broker had not returned my emails or calls to let me know if there can be an extension on the due date.  If there can't be an extension, should I pay the premium and hope we can still close, or let it cancel and get different coverage when closing is assured?

@Wayne Brooks

I think I may have bound coverage.  My concern was the risk the bank would need to take time to foreclose all over again.  Could it take a year?  I don't know.  So, in that case, I then pay for a policy that I don't own, and may not own for the foreseeable future.

If I knew it would just be a few weeks, there's no issue at all.

I have a property under contract. It is an REO. Initially, we were to close in the beginning of February. Then it was pushed back to last Wednesday. In the meantime, I had my insurance agent secure a vacant dwelling/builder's risk policy for renovations after close. Last week, I got a notice that the policy would be cancelled if payment was not received by March 4. No problem, we were to close on Feb 25. We didn't close as scheduled as they discovered a defect in regards to title that needs to be cleared. Now, I have not paid the premium yet, because I've heard stories of title issues arising and it ends up that the bank did not foreclose properly, and the the entire process has to be re-done. I've called and left messages for the broker, but they have not been returned. So, I do not know if an extension is possible, another application needs to be filled out, etc. The earliest I am looking at closing is the 10th. So, barring any changes, the policy will be cancelled. I've begun shipping around for other insurance in the meantime, but my question is in regards to my financial liability on the first policy. I assume it is rather normal not to pay the premium until closing, or until it is clear that closing will occur. Am I liable for the premium in this case? Do situations like I described happen regularly? It's a curious turn of events, as the broker had been fantastic to work with up to this point. I don't know what happened, but I can't continue to wait either. If it matters, this is a commercial policy, and the property is being purchased by an LLC.

@Michaela G.@Wayne Brooks@Ronald Bourgeois

Thank you all for the consensus!  I certainly don't want to push my luck.  I've been patient for about 20 months, which was when I started educating myself and deciding to get into this.  A few more weeks won't hurt.

I don't want to play Russian Roullette! Incidentally Wayne, I would have voted for your post twice if I could.  I always appreciate candor and straightforwardness.  You said a whole lot in such a short sentence.  It's appreciated.

@Jason V.

I don't have a better deal.  Although I haven't been looking either.  Is it reasonable?  On one hand, it is.  They only asked for two weeks.  On the other, they've had the property for a year, and waited until now to work on clearing up a defect.  I guess that their expectations of performing quickly, and efficiently should be reciprocated.

In the end, I really can't walk.  I got too good of a price.  Part of me thinks the price should be reduced, due to their lack of performance.  Thanks for clarity.  I'm riding the wave of emotion a bit right now, I guess.

I have my first deal under contract. It's an REO, all-cash deal. The deal was accepted 1/26, and we wanted to close by the beginning of February. I've read that banks work on their own time, but they were very clear that they wanted this deal done ASAP, and wanted forms signed quickly and expeditiously. For various reasons, I'm quite certain that they wanted this wrapped up and off their books.

After everything was completed on my end, they dragged their feet on signing the completed contract, agreeing on a settlement date, returning forms to the title company, etc.  We were scheduled to close tomorrow, and I was just informed that they need an extension to clear a defect in the title.

First, I was irritated and was just going to say okay and go with it.  Then, I was thinking to myself:  "would they have been as understanding if I couldn't perform to the contract?  Would they have just kept my earnest money?"

It seems to me that granting an extension on my end should result in a concession on their end. There's time-value to consider that my EMD is sitting there doing nothing while in escrow.

FWIW this property has been on the market a long, long time.  I got it at an amazing price, because I felt the bank needed it gone.  So, I feel like I have leverage in this situation. Should I grant the extension, but lower the purchase price offered due to the delay?

While I can't comment on the technique described, Clayton Morris was the guest on episode 151 of the BP podcast (which I enjoyed). I would presume he'd be willing to answer questions either here or in the comments of that show.

Hi Jerry!

I'm from the Reading/Berks County area (Sinking Spring).  There's some fantastic local investors around here that are always willing to help.  I'm always looking to network.  Best of luck to you!