The purchase and sale of California residential real estate in foreclosure is governed by the Home Equity Sales Contracts Act (California Civil Code Section 1695, et seq.). The Act provides mandatory contract terms, gives a right of cancellation to the seller, and prohibits a number of practices, among other things. (You can read California Foreclosure [...]
Author Archives: James Freeman
California Foreclosure Investing Update: Be Careful Before What Entity You Use
November 1, 2006 – 7:15 pm
New for California 2003: Real Estate Transfer Withholding Requirements
February 1, 2003 – 4:34 pm
California has imposed strict new withholding requirements on all individuals, including residents, who sell California real property.
Beginning January 1, 2003, escrow companies must withhold 3-1/3 percent of the sales price of any real estate sold that is over $100,000 – that is not a personal residence; nor a 1031 exchange; nor a 1033 involuntary conversion or [...]
Skim Rent, Go To Jail
July 1, 2002 – 5:42 pm
Rent skimming is a crime, as some Sacramento area “entrepreneurs” found out recently.
The individuals were convicted of mail fraud and rent skimming (Click here to read the recent news article) in a scheme that stemmed from their involvement in a business called “Foreclosure Intervention Services.” Under that name, the individuals contacted homeowners in the Sacramento [...]
When is a Deed a Mortgage?
May 1, 2002 – 5:25 pm
Here is a common “deal making scenario” when trying to buy a house for below market, that comes out of many “guru training programs” (but NOT from our Mastering Foreclosures Programs):A homeowner whose house is in foreclosure is reluctant to sell the property to you. To overcome the reluctance you suggest that you will allow the defaulted homeowner [...]
Use Caution before you try a “Lease-Option”
April 1, 2002 – 5:06 pm
A lease/option is simply a pairing of two common real estate transactions: an ordinary lease of property, and an option to purchase the property. Using the lease/option arrangement, a house or other real property is leased to a potential buyer for some term, and the buyer has the option to purchase the property during or [...]
Winning Auction Bidders — How to Get the Old Owners OUT!
March 1, 2002 – 4:58 pm
You are the successful bidder at the Trustee Sale auction, only to find that there is someone living in your property. As the purchaser at the Trustee’s Sale, you are entitled to recover possession of the property purchased. But if the occupant of the property won’t move, you will have to resort to an unlawful detainer [...]
Buying the Note… Another way to get your deal
February 1, 2002 – 6:08 pm
One strategy in buying distressed real estate is to acquire the defaulted note and then negotiate the acquisition of the property from the defaulting owner or foreclose upon the property. There are a number of benefits in this strategy as well some risks.The note holder is often willing to sell the defaulted note at a discount. [...]
Payoff Demand Statements (What happens when the lender screws up)
January 1, 2002 – 6:00 pm
The beneficiary under a deed of trust must deliver a “payoff demand statement” within 21 days after the receipt of a written demand from the trustor or his successor, a beneficiary under a junior deed of trust, or a licensed escrow holder (so-called “entitled persons”). The statement must set forth the amount required to fully [...]
Cancellation of the Home Equity Purchase Contract
November 1, 2001 – 5:33 pm
The Home Equity Purchase Contract law (California Civil Code Section 1695 and following) strictly regulates the content and enforceability of an Equity Purchase Contract. With limited exceptions, all contracts by which a purchaser acquires title to a residence in foreclosure are subject to the law.
Cancellation Period
All Equity Purchase Contracts are subject to a “cooling off” [...]
Rent Skimming
October 1, 2001 – 5:28 pm
Rent skimming or equity skimming can take several forms — all of which are illegal.In one case, for example, “buyers” would follow foreclosures and solicit the homeowners with the following “deal”. They promised homeowners that they could stop the foreclosure and save their credit if they transferred ownership of their houses to the buyers through [...]
