Foreclosure/ Sub 2 Deal Went South...Please Help
This was suppose to be my first deal. I met a guy that was in forclosure and wanted out from under his home(he had moved out 2 years prior). He told me that he owed about $145,000 on the house and wanted $15,000 in consideration (total of 160k). The house is worth 215k. I got him to deed the property over to me and sign and agreement for the terms. The documentaion provided to me turned out to be incorrect. He acutally owed $165k not $140k and there was a holdover tenant that need to be removed (his ex-girlfriend) that was in possesion of the house for 2 1/2 years. I explained to him that i was still willing to work with him but i would have to sell the house for the deal to work. Well needless to say, this deal started mid August and I didn't get a contract until Late November(other legal problems keep poping up). The deal was almost done. All that was needed was for the inspector to inspect the property. To my surprise, the ex-owner had decieded to move back in the house(after 2.5 years and with no warning). He has sent me letter stating that I am in breech of our contract and that he has cured his mortgage. Also that I need to quit-claim the property back over to him and make it easy on myself. I really don't know what to do. I 'm still in a state of shock. Can anyone help?????
Go see a lawyer. No one here can tell you what recourse because we do not know the laws in your state or what was signed. Take your contract to a lawyer and ask him if you are in breach.
Tom[ Edited by tbelknap on Date 12/16/2003 ]
Isnt much you can do about somthing like that without legal action. Its almost sounding like be was planning on tryin 2 find an investor. Look into it.
[addsig]
Hi loans24seven,
Although you could get an attorney, you could fight this one, and you may win or lose. However, this will tie up a lot of your emotional energy and could halt you from moving forward on your next deals.
When I am working with someone who gives me grief in the beginning, I terminate all dealings with these homeowners in the beginning. If they give you problems in the the beginning, they will give you problems all the way to the end.
Make it easy on yourself, give the fellow a QCD (as long as you dont have a significant investment in the house), so that you can move forward with your investing career. These wierd things can happen to any investor, so just lick your wounds, recap your learning experience, and move forward to your next payday!
Best of Success!
BAMZ
if a deal is crashing. let it crash while you run for high ground. if you have little or no cash walk away if they are into you for quite a bit get a lawyer. but the point is as everyone has advised is to drop it as soon as possible. ggod luck. kenmax
Did you give him any money ?
It seems that the former owner wants something from you (deed to property). Therefore, he is likely the one that would take legal action. It seems worth while to spend a little time with an attorney to see what your position is. You can probably get this for free.
I assumed that you have paid $15,000 since if not then you have not given consideration for your part of the contract and it may not be in effect.
If it is in effect you may be able to negotiate something in your favor, depending on what the attorney says. You probably don't want to litigate this but it appears that there may be opportunity with some negotiation.
Just another opinion.
Happy Holidays,
Ed