What happens if a home you signed to purchase goes into foreclosure before the closing date? We were supposed to close on a home four months ago. On the day of closing we get a call from the seller’s realtor that the sellers owe 22K and need time to figure out negotiations w/the mortgage company. …
Category Archives: Buying and Selling
Impound Accounts Facts and FAQs
I’ve seen a fair number of questions on impound accounts in the last several months. An impound account, also known by the confusing term escrow account because the lender is holding it in escrow, is money that you give the lender in order to pay the property taxes and homeowner’s insurance on the property when …
Dual Agency: Using the Seller’s Agent as Your Buyer’s Agent
Is it unwise to use the listing realtor as your purchase realtor? A house I’m interested in purchasing is being sold by the realtor selling my house. Although she’s done a decent job selling my house, I fear she won’t negotiate well on my behalf if she has to divide her loyalties between these listers …
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Flipping vs Fixing vs Investing
I get occasional questions about the difference between these three kinds of activity. Well, there are subjective parts to the answer, but here are some general guidelines: A true flipper is looking for a quick turn on the property, usually without much work done to really improve the property. They don’t typically keep the property …
Why Do I Have to Pay For The Appraisal When I Cancelled Escrow?
I got an ill-mannered complaint email about how an evil loan officer from another company ordered the appraisal without waiting for the inspection to be done, and it turned out there was a minor problem that the seller likely could have had repaired, but this clown chose to walk away, and as a result is …
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Why All The Fuss Over Real Estate Transactions?
Why doesn’t real estate just sell for the asking price instead of having to go thru all the paper work…? Wouldn’t it be easier to just put a price on it and sell it for that price? We don’t go thru all of that when purchasing cars or anything else. Where did this practice start? …
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What Do You Know That I Don’t Know?
Whenever I go scouting in public forums, somebody is always asking, “What’s the secret? How do you get rich in real estate?” The alternate to this question is “What do you know that I don’t?” These people are sure there’s some magic formula for getting rich quick in real estate, but nobody is willing to …
The Mechanics of Inheriting Real Estate
How do you transfer house ownership after someone dies and leaves you the house in a will? The will must be probated. Once all debts of the estate are paid and the court agrees to a final disposition of assets, the executor will then create a deed giving whoever it is title to the property. …
Why There Is Money in Fixer Properties
I am an adamant believer in the Non-exclusive Buyer’s Agency Agreement. In practical terms, as opposed to the Exclusive Buyer’s Agency Agreement, it is so much to the advantage of the consumer that it isn’t funny, and it doesn’t usually hurt good agents. On the other hand, the proponents have one argument going for them …
When You Should Not Buy Real Estate
Okay, I did an article called Why Renting Really Is For Suckers (And What To Do About It). Fairness demands that I do a companion article on situations where buying is not a good idea. There actually are some. First off, the math just plain works against it for less than about three years. If …