Can you ask a homeowner in California, to sign over there deed or sign a sales contract when they are in the foreclosure process and how does the 5 day notice of cancellation work? Thank you!
I would like to find out the answer to this one,
I guess my first question would be, why?
If you are an investor looking to buy properties subject to their existing mortgage you need to carefully look at civil code 1695. Actually you should hire an attorney to walk you through the risks of civil code 1695. It does include a number of things including the 5 day cancellation period you noted. Keep in mind that the way that works is that you can not have the owner sign over their deed until that period has expired (with an exception for cases where the trustee sale is imminent).
If you are buying the home to live in yourself, 1695 and the cancellation period do not apply.
Thank you so much for replying Debra. Folks are so giving in there expertise on ForeclosureRadar. Debra, I?m not looking to take the property over ?Subject To?. I am negotiating a short sale and will subsequently wholesale the property to a rehab investor. Do you know if I can ask for their deed and can I have the homeowner sign a sales contract and then do I wait the 5 days to ask for the deed? Thank you so very much for your input.
If it is a short sale, the lender will require title and escrow, and they will handle recordation of the deed. If the owner has had a notice of default filed, then you should use a contract that conforms to civil code 1695. Any CA Realtor would have access to the correct form through their CAR membership. Be super careful to review all the documentation when you sign. Many lenders are now requiring the seller, Realtor and even the buyer to sign documents stating that the purchase is being made at fair market value. If you sign something to that affect, and then flip it as a wholesale deal to a rehab investor you may find the lender that took the loss on the short sale accusing you of fraud and looking to recover their losses someday down the road.
Sean, that is some good stuff. Thank you very much for going out of your way and disrupting your evening to reply.