Bail Bondsman has lien on property

[sancho_man_orlando]

I'm working a deal where the seller is allowing me to take over the 1st mortgage.

My seller mentioned a friend loaned $8,700 and it was recorded against the property.

I checked title and this "friend" happens to be a bail bondsman who recorded an $86,000 2nd and an $8,700 3rd.

I called the guy up and he said he recorded it this way to "collateralize the loan".  I wasn't exactly sure what he meant so I said...

"let me get this straight... you loaned _____  (my seller) $8,600 and recorded both an 8700 and 86,000 liens"? 

And the bail bondsman replied "yessir"

So, i research more and they are both written by "american bankers insurance of florida" and NOT the so called friend.  Both my seller and sellers bailbondsman friend are listed as "mortgagors" according to the documents on public records.

I'm not sure how to word my discussions going forward but I am willing to help my seller satisfy the 1st and 8,700 loan from her friend but how do I get rid of what appears to be an 86,000 hurdle?

[MichaelQuarles]

It appears as though the third is the actual lien and the second would have been if the person skipped on the bail.. Most bail bonds are for 10 percent of the face value...

You should be fine with paying the third and having the second released or take the 2nd and 3rd subject to just get a bene statement from the second and third first...

Gotta love this business....

[$Cash$]

sancho_man_orlando,

Glad to meet you.

American Bankers most likely it the Bonding Company that the Bail Bondsman uses when he writes a Bond to the Courts to have someone released from jail on bond.

Have you checked to see if your friend was arrested and needed a bond to get out of jail?  This is what it sounds like to me and the bondsman used the house to collateralize his bond for having your friend released from jail.

The $86K was the bond amount and the $8.7K was his commission and he wrapped them together on the house.

Just my thoughts...

John $Cash$ Locke

[MichaelQuarles]

John didnt you own a bail bond company at one time?

[sancho_man_orlando]

Yes, after doing some research my seller has a long list of charges dating back to 07 and most from earlier this year... right around the time of these liens being recorded.

My offer was to take the entire property "subject to" the existing financing.

My purchase price is 120k

72k
8.7k loan from "bail bondsman" friend who said they'd take payments
36.3k owner financed for 60 months
3k cc lien - pay off later

I talked to the friend last week and he said he'd take payments as it was better than the house going to auction and him getting nothing.  Seller confirmed earlier and asked that I call him but as of today have been unable to get ahold of the friend.

At closing would I have him sign a satisfaction for the 86k lien & i make payments on the 8,700? 

I'm not sure what a "bene statement" is.

[MichaelQuarles]

The Credit card Co will take 50 cents on the dollar right now... There is a phrase you must read to them.... Once you do they will send you a letter making you the offer of the discount.

On your seller note make certain it guarantees any future costs above today's payoff demands from the lien holders... Not fair but who cares.. Also take it unsecured... You do not want them to be able to hold your resell up with the reconveyance.

You are in the driver seat they are not...

They may be friends but this is business.

Bene = Beneficiary    Basically a payoff demand

[$Cash$]

Michael,

Yes, for several years, as a matter of fact I still have a house I picked up when I bailed someone out and they used their house for collateral.  However, they did not have the money to pay the commission so I wound up with the house.

John $Cash$ Locke 

[MichaelQuarles]

John its been too many days sense we chatted last... We must catch up soon...

Take good care this Holiday

[sancho_man_orlando]

In the past I have drafted my own paperwork when buying subject to.

I used documents from an attorney / investor from a state known for skiing.  I even used documents from a guy who rides motorcycles in the sunshine state.

With regards to this particular deal I have contacted title companies and attorneys to help me with this.

Neither of the courses ever explained how to write satisfactions or write a promissory note and mortgage for owner carried deals.

Problem is that the good faith estimates i've been receiving are over $2,500 just to get the paperwork written, title insurance & closing costs.

Ouch!

Would it be wise to pay for a title search and handle closing the way I have in the past?  I've been told that due to the sellers shady past it "may" be wise to get title insurance. 

[MichaelQuarles]

I would buy a title policy if there is equity in jeopardy... If not why pay the price?  If you do then also buy a rider/binder so when you resell title cost are at a minimal expense.

Also a pre may be all you need.  If a title company is willing to insure based upon the pre that will give you a good indication of security... Have you seller fill out a statement of Information and fall forward.

Here is the form youll need   http://www.michaelquarles.com/Statement_of_Information.pdf