Buyers will need experienced agent for foreclosure
Dear Michael: My friend just bought a house a few months ago and I agreed to be the co-buyer of the house. Now, I want to get off of the title because my same friend who purchase the house just told me that he will not be able to make the payments he just lost his job. What should I do? I am just the co-buyer.
Answer: You’re not the co-buyer. You are an owner of the property, and I presume you’re name is listed on the mortgage as well.
As far as the mortgage lender is concerned, you are (and always were) considered a primary borrower on the property. If your friend fails to pay the mortgage, the lender will come after you for the money and his failure to pay on the mortgage can hurt your credit history and credit score for the next 7 to 10 years.
The only thing you can do now, if you want to protect your credit history and score, is to make the payments on this property. If you’re listed on the mortgage, you’re legally liable for those payments. If you fail to make the payments, the lender will foreclose on the property.
If you can’t make the payments, tell your friend to move out of the property, and find a renter to help defray costs until you can get the property sold. Unfortunately, you’ve discovered the primary danger of “lending a signature” to someone who suddenly can’t afford to make the payments, you’re on the hook. For more details, please seek the advice of a real estate attorney.
Dear Michael: I have an interested buyer who submitted an offer on my property. I did not have a good impression or perhaps I did not like the way she degraded my home when she was previewing it. I would rather not sell my home to her. Do you have any suggestion to what I should do?
Answer: This is one of the many reasons why a seller should not be home when a prospective buyer previews a home. This incident is not common but when it happens it can sour a deal and leave everyone wondering “What Happened”?
Stay away from the buyer for the duration of the escrow. There is no need for you to communicate with the buyer. Let the Realtors take it from here, negotiate and resolve any kind of mishaps, be it minor or major.
To lose a qualified buyer is mistake on your behalf. Emotions can, and will sometime get the best of us. Put them aside and you’ll be satisfied when escrow closes and you have moved on with a nice paycheck.
Dear Michael: We are first time buyers and are considering buying a foreclosed home, as they are priced lower compared to standard sale homes. Are foreclosures a good idea for first time buyers?
Answer: A foreclosure property is a home that has been repossessed by the lender because the owner has failed to pay the mortgage 9also called REO). Currently there are thousands of homes in foreclosure. Economic condition is the number one factor contributing to foreclosures.
Many people loose their homes due to job loss, credit problems or unexpected expenses. It is wise to be cautious when considering a foreclosure. Hire an experience Realtor he/she will take you through the process. It is important to understand the purchase contract or any addendums that are initiated and written by the foreclosed seller.
These REO contracts are unfamiliar to most Realtor’s. Your agent will have to read trough every line to make sure there are no clause’s that could be a surprise down the road. Most foreclosures come without any type of credits for repairs or termite work paid by the seller. These homes are sold: “as is”.
Buyers should have the house thoroughly inspected and make sure they have satisfied themselves with the home before removing any and all contingencies.
Michael Kayem is a Realtor with Re/max /Estate Properties serving Culver City and the Westside since 2001. You can contact Michael with your questions at 310-390-3337 or e-mail them to him at: homes@agentmichael.com