Short Sale
5 Things To Consider For A Successful Short Sale
Posted by: Kenny Tan
March 25, 2012
As the foreclosure crisis lingered on, more and more programs - government sponsored as well as lenders' owninhouse ones - were introduced to encourage more borrowers to opt for short sale and not lose their property through foreclosure - SB 931 and SB458 brought relief to borrowers from tax and deficiency liability.
Therefore you would expect short sales to be approved with much more ease than before, Yet, there are still properties lost to foreclosure instead of sold thourgh short sales. How canyou increase your rate of success?
How You Get The Sellers To Leave After A Short Sale If They Won't
Posted by: Kenny Tan
January 28, 2012
I can suggest a few reasons why a seller might not want to leave after the escrow closes on a short sale - no money for security deposit and rent, sellers' remorse, unhappy with the lender, family disagreement, etc. You name them.
But whatever the reasons may be, have you wondered how you're going to get the sellers out if you're the agents or the buyers.
?
File An Unlawful Detainer
First thing that comes to mind is eviction, legally known as unlawful detainer. That's a summary or expedited procedure to evict someone. You servce a 5-day summons. By statute, trial date must be set no later than 20 days after answer filed and request for trial setting filed.The usual time frame to complete is less than 4 months.
You Need A Landlord-Tenant Relationship or Court-ordered Or Foreclosure Sale
You can file an unlawful detainer under two statutes - Code of Civil Procedure 1161 or 1161a. CCP 1161 is available for typical landlord-tenant situations and 1161a is for eviction after a court or foreclosure sale.
My first impression is that in a short sale, neither of these statutes apply. In a short sale, situation, you're dealing with a former owner of the property who's not lost his property through foreclosure. Thus, how do you bring an unlawful detainer against a former owner who's not really a tenant?
Former Owner Of The Property Could Be A "Tenant"
Not just your traditional one.
In California, most transactions involve the use of the CAR standard purchase contract.The standard CAR purchase and sale agreement has a standard condition in it which allows the sellers 3 days to deliver the keys to the buyer, new owner.
Though the formwer owner pays no rent to the new owner, you may be able to treat the relationship as a tenancy by consent.
The only remaining question is what notices if any need to be served on the former tenant before eviction. A 3-day notice may or may not apply here because the former pays no rent and has not defaulted on the rent nor violated a term of the lease as there was no lease. The former owner has simply refused to honor the tenancy by consent which expired on the third day after close of escrow.
You may be able to base the eviction on the expiration of a fixed term tenancy and commence unlawful detainer wihout a prior notice.
Cash For Keys
Of course, you can always resort to the old "cash for keys".
