Should You Sign Foreclosure Deeds Alone?

March 20, 2007 by

I’ve personally never invested in a foreclosure deal so I’m only writing about this based on a story I heard from someone else. It’s tough enough to find a gem like this but if you do, here’s how to play it out.

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 probablywon’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.

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.

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11 Responses to “Should You Sign Foreclosure Deeds Alone?”

  1. Alex on April 25th, 2007 6:56 pm

    Thank You

  2. www.buymydfwhomenow.com on August 15th, 2007 10:30 pm

    Anyone know any good foreclosure books etc that have good information and priced right?

  3. www.nocreditcheckproperties.com on August 16th, 2007 10:09 pm

    Any links for sale on this site?

  4. Real Estate Taxi on June 30th, 2009 4:58 pm

    I think that in every real estate transaction you should go though the proper persons. You are investing a great deal of money, into this home, you don’t want to get screwed over down the road of a mess up you did. Get professional help!

    Walt

  5. www.nocreditcheckproperties.com on October 20th, 2009 8:55 pm

    We buy houses anyone on board and active listings?

  6. ownerfinance on November 17th, 2009 10:35 pm

    owner finance no credit check houses homes rent to own for sale by owner

  7. ownerfinance on November 17th, 2009 10:37 pm

    owner finance homes owner financing financed

  8. ownerfinance on December 1st, 2009 8:55 pm

    Owner financed homes and no credit check homes available

  9. ownerfinance on December 1st, 2009 8:56 pm

    For sale by owner homes|owner financing|Rent to Own Homes

  10. ownerfinance on December 1st, 2009 8:59 pm

    Owner finance Usually all you need to qualify for any of our homes is the down payment and the first month payment and your share of the closing costs to transfer ownership into your name. We do not rent-to-own or lease option. We owner finance. We use a title company and put the deed in your name. Once the property has closed you will actually own it. Very similar to what a bank would do when it lends money. The only real difference is we will provide you the money to purchase your property instead of the bank which means you pay less down than what a bank would typically charge plus we do not require a credit check. We only loan on property you see listed on our websites and no others. We also do not charge ridiculous interest rates. Typically our rates are very comparable to the current market rate of interest or just a point or two above. It varies depending on the house you select.

  11. tayo on April 27th, 2011 1:37 pm

    great article on real estate loan..

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