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Finally, after you've held
property while it appreciated in value, you are ready to sell and cash out.
When you have found a buyer and you are arranging close, send lender a request that any balance in impound account be sent to you or your company. Always send along copies of Powers of Attorney so lender knows you have authority to make request.
Sometimes they will honor your request and sometimes they won't.
More importantly, instruct escrow officer or attorney handling closing of your sale to ask for impounds. They will give pay off instructions to lender and lender usually will follow those instructions without question.
On a recent deal we received a check from a lender for impounds in amount of $1,357.00. Yeah!.. Happy dance!
Was there a catch? The check from lender for impound funds was made payable to two original sellers whose names were on loan. It looked like this...
Pay To The Order Of: John J. Seller, Paris W. Seller c/o The Author's Investment Corp.
Was that trouble? No! Remember we had a separate Power of Attorney for each of these individuals. We took check and POAs to our bank. We explained situation and here's what bank officer had us do...
On back of check, we signed name of each seller. After those signatures we wrote:
By_________________ (and signed our own name).
Then we signed our company name and again (By______) and then we signed our own name and position in company.
That was it! An easy way to pocket $1,357.00 that too many investors leave on table.
Now YOU will never walk away from that extra thousand or so dollars!
If you would like to learn more about buying "subject to" look here...
http://digbig.com/4cgpb
About The Author: Mark Walters is an investor and author. You can find his published material at http://www.CashFlowInstitute.com http://cfiblog.blogspot.com/
