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My SB evaporated before I got the trust created. What now?

Home Forums General EHTrust/EHT Topics and Creative Real Estate Financing My SB evaporated before I got the trust created. What now?

This topic contains 15 replies, has 0 voices, and was last updated by Avatar of red12 red12 11 years, 5 months ago.

Viewing 15 posts - 1 through 15 (of 17 total)
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  • #4891
    Avatar of red12
    red12
    Member

    A little background…

    This was a FSBO pre-foreclosure deal. Vacant house, local owners. Bank worked out a forebearance deal. I paid $1142 to get the bank to agree to put the remaining arrearages on the “back” of the loan (I already had an RB waiting). The new mortgage documents were finally sent by the bank but sent to the property in question where they sat until the USPS picked them up and returned them to the bank. No problem, I thought since the SB called the bank and they agreed to resend the docs. That was over a month ago. Now I have an RB in the house (interim lease) and an SB that won’t return my calls.

    What do I do about this?

    #26042

    Put a Nice Big Sign in the Yard of the Property that says, FOR SALE“, with YOUR Number on it.

    He’ll call.

    Then, you can talk.

    Just tell him you were trying to reach him and now, you’ve got a situation….

    #26043
    Avatar of mtnwizard49
    mtnwizard49
    Member

    A little background…

    That’s way too little background. You placed an RB in the property before you signed Trust docs with the Seller? Other than the fact that you brought the loan current, you are not on title and have ZERO right to lease the property to anyone. Under what theory do you believe that you do??? No contract = no deal. There are no verbal contracts in regard to real estate. If you are relying upon your NEO, then you may have to go into court to sue for “specific performance”.

    #26044
    Avatar of red12
    red12
    Member

    @mtnwizard49 wrote:

    A little background…

    That’s way too little background. You placed an RB in the property before you signed Trust docs with the Seller? Other than the fact that you brought the loan current, you are not on title and have ZERO right to lease the property to anyone. Under what theory do you believe that you do??? No contract = no deal. There are no verbal contracts in regard to real estate. If you are relying upon your NEO, then you may have to go into court to sue for “specific performance”.

    Gary,

    The NEO is all I have. Isn’t that the whole idea behind an interim lease agreement? You know, I’ve done two deals with interim lease agreements and they’ve BOTH turned to ca-ca. I’m thinking that they are now out of my inventory along with RBs that don’t have enough for a contingency fund.

    Richard

    On a lighter note, after taking a couple of months off from NARS stuff and concentrating on finishing my “flip” (another deal turned to ca-ca) I did call a BUNCH of FSBOs today and will be sending them offers tonight and tomorrow.

    #26045
    Avatar of dbhenderson
    dbhenderson
    Member

    Richad,

    Don’t blame the interim lease agreement. I personally think it is one of our best tools. However, this is the first time I’ve heard of the SB not being interested in someone in a foreclosure situation that has someone willing to make the payments and he can’t be found to finish the trust docs. Sounds like you SB is a “walkaway!”

    Maybe you should just treat it like a regular lease agreement until you SB wakes up. Collect the leae payment, pay the mortgage company, put the cash flow in a reserve and give it a couple of months. If the SB doesn’t come around, start looking for another house to move your RB to.

    Your NEO is pretty strong if he signed it. Any legal challenge will probably come from your SB. You have an option to be a beneficiary in the trust that he has agreed to do. With that I’d act like an owner till it is challenged.

    #26046
    Avatar of getsmart
    getsmart
    Member

    i don’t understand why you would make the back payments or a partial and sign a NEO. this gives the seller a way out if you don’t have certain language in it. next time if you put cash up you want to get an exclusive option. don’t have it any other way. from the little info i understood the seller knows their rights and is waiting for the lease agreement to end so they can sell the property themselves.

    #26047
    Avatar of red12
    red12
    Member

    @GetSmart wrote:

    i don’t understand why you would make the back payments or a partial and sign a NEO. this gives the seller a way out if you don’t have certain language in it. next time if you put cash up you want to get an exclusive option. don’t have it any other way. from the little info i understood the seller knows their rights and is waiting for the lease agreement to end so they can sell the property themselves.

    My RB was waiting with cash in hand. I wasn’t that concerned about the money I spent to make the deal happen. The SB is still local, I guess I’ll be driving to his new house for a face-to-face.

    #26048
    Avatar of mtnwizard49
    mtnwizard49
    Member

    Red,

    If you haven’t already done so, RECORD a Memorandum of Option to cloud the title. This will prevent the Seller from going around you and selling to somebody else. Good luck.

    #26049

    Beautiful, Gary, Just Beautiful !!

    #26050
    Avatar of red12
    red12
    Member

    @mtnwizard49 wrote:

    Red,

    If you haven’t already done so, RECORD a Memorandum of Option to cloud the title. This will prevent the Seller from going around you and selling to somebody else. Good luck.

    Thanks, Gary. I’ll do that on Monday. The SB and his wife are getting divorced. He may be angling to get that house back!

    #26051
    Avatar of joecain
    joecain
    Member

    Hi Richard -

    Over the last couple of months, I have read several posts from you about this property and your “Resident Beneficiary” and often wondered where your Trust Docs were for this deal. I have checked our Trust Manager Program and see a skeleton frame for a property in Moss Point, MS including notes that indicate that this is the same property you are referring to, but that framework was generated 4 months ago and there is not sufficient info supplied to generate Trust Docs, even if you had actually Submitted the info to us, which as yet, has not been done.

    I recognize that the NARS Interim Occupancy Agreement can be very useful in certain situations with the tenant/soon-to-be Resident Beneficiary. Use it or not, that is your business model and your business choice.

    What I will address here in this post is different, however.

    In the future, I would like to suggest that you consider the possibility of having completed signed Trust Docs in your possession and in the possession of the Trustee before you actually send checks to pay off arrearages with the current home owner’s lender, tax assessor or insurance agent. This is a different conversation that the one posted in this string. I generally recommend against paying off another party’s debts until the actual Trust Doc Package has been generated, reviewed, approved and signed in ink by ALL the Beneficiaries of the subject Trust.

    So, it sounds like you can find the current owner. Please do so. And, while you are at it, have a short conversation with them and encourage that party to move forward with the actual Trust Docs in order to protect yourself and your investment of time, energy and money (!!). If they are willing to proceed, get the info needed to complete the on-line Submission of your transaction at our website and then plan on forwarding to us the support docs needed to generate the accurate (and legally binding) Trust Docs.

    Having an Interim Occupancy Agreement with the tenant coupled with a Non-Exclusive Option Agreement with the still-current owner of a property is NOT the same thing as having a Trust!!

    If you supply us with the info we need to make this happen for you, I will make sure that we generate the Trust Doc Package in lightning-speed and you can complete this transaction in a matter of days!!

    Please Richard, “git ‘er done!” Protect yourself. Protect the parties.

    Contact our Office if we can assist you in making this happen.

    #26052
    Avatar of red12
    red12
    Member

    @joecain wrote:

    Hi Richard -

    Over the last couple of months, I have read several posts from you about this property and your “Resident Beneficiary” and often wondered where your Trust Docs were for this deal. I have checked our Trust Manager Program and see a skeleton frame for a property in Moss Point, MS including notes that indicate that this is the same property you are referring to, but that framework was generated 4 months ago and there is not sufficient info supplied to generate Trust Docs, even if you had actually Submitted the info to us, which as yet, has not been done.

    I recognize that the NARS Interim Occupancy Agreement can be very useful in certain situations with the tenant/soon-to-be Resident Beneficiary. Use it or not, that is your business model and your business choice.

    What I will address here in this post is different, however.

    In the future, I would like to suggest that you consider the possibility of having completed signed Trust Docs in your possession and in the possession of the Trustee before you actually send checks to pay off arrearages with the current home owner’s lender, tax assessor or insurance agent. This is a different conversation that the one posted in this string. I generally recommend against paying off another party’s debts until the actual Trust Doc Package has been generated, reviewed, approved and signed in ink by ALL the Beneficiaries of the subject Trust.

    So, it sounds like you can find the current owner. Please do so. And, while you are at it, have a short conversation with them and encourage that party to move forward with the actual Trust Docs in order to protect yourself and your investment of time, energy and money (!!). If they are willing to proceed, get the info needed to complete the on-line Submission of your transaction at our website and then plan on forwarding to us the support docs needed to generate the accurate (and legally binding) Trust Docs.

    Having an Interim Occupancy Agreement with the tenant coupled with a Non-Exclusive Option Agreement with the still-current owner of a property is NOT the same thing as having a Trust!!

    If you supply us with the info we need to make this happen for you, I will make sure that we generate the Trust Doc Package in lightning-speed and you can complete this transaction in a matter of days!!

    Please Richard, “git ‘er done!” Protect yourself. Protect the parties.

    Contact our Office if we can assist you in making this happen.

    Thanks for the advice, Joe. The paragraph in bold above from your post is going to be my modus operandi from now on. I’m convinced that the only time SBs and RBs are lying is WHEN THEY’RE TALKING! The paperwork was actually sent by the lender once but wasn’t picked up by the SB in time so the Postal Service sent it back. A request for replacements was made immediately but I’ve never gotten them and the SB won’t talk to me (on the phone anyway). We’ll see what a face-to-face meeting brings about.

    #26053
    Avatar of red12
    red12
    Member

    An update…

    I still can’t get in contact with the SB. I have filed a Memorandum of Option to Purchase against the property.

    I’ll fill in more details as they occur (IF they occur)….

    #26054
    Avatar of areyes
    areyes
    Member

    any lessons that we can learn from this when using an interim occupancy agreement without having the trust created yet?

    who’s collecting payments?
    the deed is still in the seller’s name, what if you cant find the seller to move forward with the full EHT conversion?

    #26055
    Avatar of homesavers
    NULL
    Member

    What stops us all from meeting with the Motivated Owner, at the kitchen table so to speak, and getting them to sign everything we need? You generally only get one shot at it. If you don’t “Strike when the Iron is hot” you lose.

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