Entry

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.