Ex-wife won't sign! Advice needed... puhlease!
An owner called me saying he is in trouble. The house may be going into foreclosure. He advised me that he and his wife have divorced. BOTH names are still on title. However, he showed me a document (divorce decree of some sort - not quit claim) whereby she signed (and it was notarized) stating that she is releasing and conveying all interest in the house to her husband. Then the document states how they are to divide the personal property inside the house. That document has never been "filed" or "recorded" to my knowledge.
I looked at the house, which is a brick cape in immaculate condition. The most recent comps show 75k to 85k. He wants to get rid of it for pay off plus taxes, any existing liens, and the back owed mortgage. I spoke with the attorney handling the foreclosure and he said it was around 30-something total. He would not release the exact amount without an authorization form (which I now have in hand). I know that there may also be some liens on it and my attorney is doing a title search now before I get any contract signed for purchase. The house was sold to the current owners via a Deed of Trust held by two trustees. The trustees owner-financed the deal for them (100%).
I made a mistake I think... I called his exwife to see if she would sign a contract to sell the house. At first, she said yes and then called today saying NO. I asked her if she knew that the house was in foreclosure and she said "yes". Then she proceeded to hang up on me.
My question is this: Can I get the husband to sign a contract for purchase without her involved? I think if I get the notarized document filed to transfer all interests to the husband first, then I can play ball. Any advice would be great. My wife and I want to get this as rental #2.
Readers may notice that I've posted this on a couple of other sites, HOWEVER, I really need advice. So I am asking anyone and everyone.
Not sure if this 'divorce decree' will work or not for the real estate. Something to ask your attorney. If so can it still be filed? Does anyone actually have the orginal or is this just what the seller is telling you? Would also be curious as to why it wasn't filed in the first place since I'm sure lawyers were involved in the divorce.
Why would you do a title search BEFORE you had a purchase contract? You're spending money on a property that you get sold out from under you. Get a contract signed and worry about the details later. You can always back out if the title search comes up with a problem.
I've went thru this before. If the decree doesn't work, the only way to get the property is for both of them to sign off on it. If one would rather it be foreclosed on than selling, there's not much you can do about.
(In my case, the husband wouldn't sign and they foreclosed, ruining both of their credit).
Roger
The owner will sell it to me for payoff - and the liens that are outstanding (if any). MY offer will not go above the liens and payoff (I wanted to first find out if any were there). No attorney was used for the divorce. It's just a piece of paper that they both sign and notarized that states how they are splitting up the property AND the fact that she is giving up all her interests in the house to him.
Technically you could have the husband quit claim deed his 1/2 interest in the property leaving u as a tenant in common with his exwife. With the property in foreclosure you probably wouldn't have the time or inclination (think $$) to do what is necessary to wipe out her interest in the property. If she won't budge chances are its better to let it go...
if you have had a title co do the title search, give them the divorce decree and ask them to issue title insurance. That way you would be covered if something ever came back. If they won't do it, then perhaps you should walk away from the deal...
My attorney is doing a search now. I spoke with the attorney who is handling the f/c for the private lender and simply asked if they would halt the process to allow us to buy it. They agreed.
Allow me to explain this "divorce decree". It's not a court order. It's simply a type written paper stating, "I, (the wife), give up all of my interests in the home and turn them over to (the husband)" and then it states the sofa goes to her, he gets the TV, etc. It was signed by both of them and it was notarized. It sounds like a quit claim/divorce agreement to me. I am calling my attorney about it this morning to see if it will fly.
A friend told me Legrand said a signed agreement is a signed agreement especially when it's notarized. I'll findout if my attorney agrees.
A fellow investor / friend of mine here in Virginia states that the paper she signed (and had notarized) stating she has given up all interests in the house and turned them over to her husband is basically a quit claim deed. Though it has never been filed to reflect such on the deed.
He said to "go for the jugular on this one" and get the deed. To protect myself, he said to put it into a land trust. Anyone know anything about how to do this? Will this get me the deed? Or get me into trouble?
A land trust won't get you the deed. It is just a protection vehicle for keeping your name out of the public records and for holding title/deed to a property with a little more security. If your attorney is suggesting it, he should know how to do it.
The only problem I see with the 'decree' is the fact that it was never recorded. Again, your lawyer is the best man for this question, too.
Keep us updated on the situation though. We'd all like to know how it turns out.
Roger
..have not run into this situation, yet, with investing. But, as a Loan Officer I run into it all the time!
Usually it's a refinance situation to get ex wife or husband off the deed and loan. You know what ALWAYS works?
Calling her to tell her that you are not working for the husband, the person she is trying to agitate, you just want to get this out of your hair and you want to pay the problem out of YOUR life.
If you can work a couple of thousand dollars to her, I'll bet the problem goes away. PAY HER!...just a thought.
hope this helps,
clear2close
[addsig]
I wouldn't worry about her TCR. get the house under contract with the husband{he has a paper she signed stating her intentions of given him authority}. get the deed signed by him and maybe a lease option contract for 99years. If you only want it for a rental you can take control of this property without the headache and without putting out more money than you have to.
IT's Decision time!