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Subject to forms??? - http://www.dealmakerscafe.com Forums

Original message

Tim

"Subject to forms???" , Tue 3 Apr 16:10

First of all, thank you to everyone that has assisted me in the past with all of the questions that I've had. It's mainly because of this website, & the caring & selfless people here that is going to assist me in making a dream come true.
As to my knowledge the main forms that are needed when doing a subject to deal are:
1. Trust agreement
2. Limited Power of Attorney
3. CYA seller disclosure form
4. authorization to release loan information (signed by seller)
5. Assignment of beneficial interest**
6. Deed to a land trust**
7. Letter to insurance company advising them to change insured**
8. Do I also need a basic purchase & sales agreement too?
If I'm missing anything, I'd appreciate it if someone could let me know. VERY soon I would like to start a postcard advertising campaign, but would first like to learn the forms like the back of my hand so that everything runs smoothly when I'm in the homeowner's residence. I used to be in radio advertising, & when I first started out I became aware real quick of the importance of knowing everything that I was doing when in the presence of a potential air time buyer so as to make he/she comfortable when dealing with me. The last three forms that have an asterick after them I have had a difficult time acquiring, & if someone would be able to email them to me I would appreciate it tremendously. I'll even be MORE than happy to pay a fee for them. And, thank you much William for the assistance with the others. My email address is Tdcsoul2@aol.com, & thank you so much to anyone that can provide assistance. Have a great night everybody, & go Cleveland Indians..lol!

Warmly,
Tim

Replies:

Ben
Moderator

"Re(1):Subject to forms???" , Tue 3 Apr 18:31

Yes, always get a purchase contract. This spells out all the terms of the deal.

Ben
Moderator
www.dealmakerscafe.com
Where the average real estate investor becomes a Dealmaker!!

Tim

"Re(1):Subject to forms???" , Tue 3 Apr 16:12

also when using the Deed to a land trust should I be using the Deed of trust form or the Warranty Deed form? Thank you again!

Tim

moseskjp

"Re(2):Subject to forms???" , Wed 4 Apr 18:49

Tim,

The property is to be transferred via General Warranty Deed (Warranty Deed to Trustee).

A Deed of Trust is another animal entirely. The deed of trust is a security instrument that's used instead of a mortgage in some states. Some states are Deed of Trust states & some are mortgage states - you need to find out which instrument is standard for your particular state. Either one (Deed of Trust or Mortgage) acts as an instrument to secure performance on the Note (debt instrument) that was created. It's what gives the bank the legal right to take the house back if you default on the Note.

When taking subject to, you're going to be leaving the existing mortgage/deed of trust in place (in the original home owner's name) & begin paying on the note. The property will be transferred to the trust. however, using a General Warranty Deed to Trustee.

Hope this helps. I didn't really understand this stuff at all either until I studied Bronchick's Cash Cow. He explains it all in there in layman's terms. Highly recommended!

...jp

"SW.SW.SW.SW."

Mark-FL

"Re(2):Subject to forms???" , Tue 3 Apr 21:28

Tim,

The Deed for the land trust I use is calles a "Warranty Deed To Trustee"

Sometimes the deal is right for a
quit Claim Deed. I use it to get the deed in a hurry, then find out if I really want the property. If I want it, I record the deed. If I don't want it, loose the deed and tell the seller he is stuck. Beware! Title Insur5ance companies hate to insure QCD's!

Success is the ability to go from one failure to another with no loss of enthusiasm. Winston Churchill

Lynn
Moderator

"Why even use the Quit Claim?" , Sun 8 Apr 15:38

It doesn't take any longer to fill out a General Warranty Deed at the kitchen table so why do you even use the Quit Claim?

Happy Investing!
Lynn

Knowledge is important but all the knowledge in the world is worthless without action! How many offers did "you" make today?

Mark-FL

"Re(1):Why even use the Quit Claim?" , Tue 10 Apr 10:42

Your right. My title agetn told me to get away from QCD's. The properties I hold by QCD are rentals I plan to keep but a Warranty deed would open more options.

He who has a slack hand becomes poor but the hand of the diligent makes rich. Prov.10:4

Lynn
Moderator

"Re(2):Why even use the Quit Claim?" , Tue 10 Apr 10:59

Some investors think that it doesn't matter when you are buying a property from someone who is financially unstable, however I disagree. Over time peoples situations change. That couple in foreclosure may be very successful ten or fifteen years from now and that may be when you decided to sell one of those rentals. If you find a problem, and if you can find the seller who gave you a warranty deed, you may be able to force them to fix or pay up.

Happy Investing!
Lynn

Knowledge is important but all the knowledge in the world is worthless without action! How many offers did "you" make today?