Owner in jail

[virtual]

A friend of mine from Florida just called and mentioned the house next to her is being sold FSBO by the owner's brother.  The owner just got arrested and it seems they need the money to bail him out.  The house is fully paid for.  I live in NJ and was wondering if anyone can give me advice.  I know they need to close soon since they need the money fairly quickly.  Being that I live in NJ and this would be my first deal, I don't want to get into rehabbing.  The house needs a good cleaning.  Nothing major.  I'm not really sure how much to offer.  I spoke to the brother today and he wants pre-approval letter.  Since I would like to wholesale, and he doesn't know I'm going to flip the property, what can I provide to him?  Also, if the owner is the one in jail, how can I have the brother accept the offer if he's not the owner or cannot sign the contract?  Can someone give me some advice on any steps or things I should need to know?   Thanks in advance.

[BigShem]

you'll have to see if the brother has power of attorney over the house... and see who the titles name is in... Thanks BigShem

[virtual]

The brother does not have power of attorney at this time and the one in jail is the only one on the title.

[BigShem]

Ok is he just looking to get his brother out of Jail...

[virtual]

Yeah, he has to come up with $25k bail bond and there's a for sale by owner sign on the house.

[BigShem]

You have to also find out what the house is worth.... he could quick claim the deed . but the owner has to sign it...

[virtual]

To get prospective buyer, I put out a posting that says I will have a propery for sale soon.  I got a few feedbacks requesting for address of the property.  Since I don't have a contract signed yet with the homeowner, I guess I shouldn't give them the address yet.  I thought there is an agreement out there that a prospective buyer can sign - almost like a non-compete clause.  Anyone heard of this?  Since I have a short time frame, I was trying to make a deal with the owner and in parallel find buyers.  What can I say to these buyers right now who are asking for the address?

[yrush2000]

Well it is possible to buy a home from somoene in jail. I have done it once..the seller got arrested about 2 weeks before closing so his attorney had him sign a power of attorney form so we can close the deal with him behind bars..

consult his attorney on having that taken care of, or depending on the jail system he might be able to just sign the papers himself if they can be given to him in an open room.

As for what to offer, etc...you need comps..maybe you want to contact a local real estate agent where the house is and offer to pay them a flat rate fee for their services in helping with contracts, escrow agent and comps...

[rayr]

I purchased a property from someone in jail about two years ago becuase they needed the money as well.

I filled lease option paperwork, limited power of attorney, right to market and permission to release information paperwork on the property.  I then took it to the jail, where a Sheriff who was a notary took it to the sellers cell and he signed it.

That gave me time to market and sell the property, or if the numbers didn't work, back out quickly.

I am not an attorney, but even with a limited power of attorney signed to the brother, I would be leary.  You don't want this person to get out on bail and state he didn't know what his brother was doing.  He probably wouldn't get far with that argument, but it could cause problems.  If his bail is $25k, he probably isn't in for unpaid parking tickets.

Go Get'em!
Ray Rochefort, mgr. mem.
Purpose Investments LLC

[TRISH]

so for a situation like this one. what are we saying here, should it be power of attorney, quik claim deed, warranty deed or any other, whats really needed here or all

[rayr]

Hi Trish,

If it was me, even though I am not an attorney, account or licensed real estate agent (take that as my disclaimer).

I would have the owner, the person or persons on title sign the following;

a. Limited Power of Attorney
b. Quit Claim Deed
c.  Sales Agreement
d. Permission to Market Property
e. Permission to Release Information

I would not be the 2nd or 3rd person in line on a sales agreement or a POA, this could create too many "what if's".

Call in advance, in my deal, one of the guards was a notary and I asked him to notarize everything.  A little overkill, yes, but the deal went smoothly.

Good Luck!
Ray Rochefort, mgr. mem.
Purpose Investments LLC