Should You Sign Foreclosure Deeds Alone?
Sep 21st, 2007 12:09
David Cowgill, Taksh Verdhan, Daniela Pellicciotti, Lyza Carmen, http://www.realestateweblog.org/should-you-sign-foreclosure-deeds-alone.php
So you've stumbled on a piece of property and the owners invite you to
come over and during the second cup of coffee they make a deal that
can't be beat. The only bad thing is that they are leaving town
tomorrow and won't be back for a closing for three weeks. Being
desperate, you reach into your bag, pull out your laptop and printer
and do a self-prepared deed and close the deal right in the kitchen.
After all, you've seen it done on television ads for years and you
know a few folks who have acquired hundreds of properties and saved in
closing costs for each of them. Here's what you should think about
the 'kitchen table closing'.
-DO not do them as a standard way of business. You will be deemed the
scam artist of the real estate world.
-DO not do them as a way of saving on closing costs. You probably
won't save much anyway with this method.
-DO not make your kitchen table closings part of your spiel to buy
property. They DO NOT hold in court in most cases
-Some people will refute them if they change their mind.
Now that you have a great view of this style of real estate closing,
let me tell you a few more things about kitchen table closings.
-Do them. If you feel that a seller may be flaky, do the closing at
the home right there. It's better than nothing.
-Don't use them. Have these documents as a backup in case your seller
fails to show for the 'real' closing at the title company.
-Keep those documents handy. Most sellers are willing to understand
them as a legal contract and will follow through, if not, you'll at
least have something to show in court.
- Make sure to get all the signatures notarized by a public notary.
Even if this is not mandatory it is strongly suggested for your
protection and enforcement of the contract in case of a dispute.
It's always good to get something in writing from a seller when an
agreement is made. I have seen too many deals go down the drain over
a hand shake and five days between the deal and the closing. All-in-
all, be honest and don't get greedy. If one deal flakes, keep walking
the streets and find you another property to invest in.