This property closed last week so Chad and I are going through final expenses prior to distribution later this week. I’m on the lookout for the next deal!
The closing was pushed back until Mar 28 because we had trouble scheduling the utilities getting turned on. We had to get a repairman to come and cap the water and gas lines before that could happen. Otherwise we’re on track to close next Monday.
Property had multiple offers within a couple days of listing. We got an all cash offer for full asking price of $40K, subject to inspection. Our realtor is getting the utilities turned on for the buyer to perform their inspection, however we are sending in a contractor first to ensure there will be no issues once they are activated.
The former occupant has finally moved out and actually left the property without incident. However, it does need a lot of work and has been in a state of disrepair for a long time, but there is no evidence of roof leaks/mold, etc. The realtor gave us a CMA which showed its fair value at $30K, which was $10K less than she originally stated. She then pulled up some new listings of similar properties which are in far worse shape that were just sold, and flippers are now relisting them for $10K more within days. So we’ve listed the property at $39K to gauge interest.
I just got confirmation this morning that the people have moved out and the realtor says she’ll get me pictures later today. I’ll get them uploaded as soon as I get them in. She recommends getting the property cleaned for $100.
Given that the people are finally out we should be able to be listed this week.
Spoke with the realtor today and she told me that the occupants had confirmed today that they would be out by the end of the day tomorrow (Jan 26). She also said that we’re getting off quite easy with only $500 to get the people out as banks are paying anywhere from $3500 to $5000 to get people to leave. As soon as they are out, Sue (the realtor) will have a look inside and send pictures and we’ll list as soon as possible.
I contacted the realtor today and she confirmed for me that the borrower will be moving out by Jan 15 after I had agreed to pay $500 cash for keys. I asked if we needed to wait until the 15th to list and the answer was yes so we’ll need to hang on a bit longer until we can list the property. Sue (the realtor) will give me her best estimate on listing price as soon as she is able to get in the house and do a visual.
Late last week I got confirmation that the seller signed the needed document and had sent it to the recorders office for recording. I called our realtor and she sent out a locksmith to change the locks only to find that someone was living there and didn’t know about any foreclosure. I sent out the documentation to the realtor proving the foreclosure happened and that she needed to leave.
This morning I got word that the occupant is the previous owner’s daughter and that the mother had passed away 4 years previously. She accepted that the foreclosure did take place and was willing to accept the $500 I had offered for her to move out voluntarily instead of being evicted by Jan 16 (30 days). She understands that she needs to move out all contents from the house and yard and leave the house in broom swept condition.
We are still waiting for the seller of the loan to sign the substitution of trustee form so that we can list the property. The last that was communicated was on Friday Nov 20 when the seller said it was in process. Both myself and the servicing company called and emailed today for updates and to apply pressure to get this done. Meanwhile the agent that did the BPO is very much on board and is looking forward to listing the property where she says she sees multiple offers on a regular basis.
Date of Purchase