HELP-Seller Has Cold Feet?
I am supposed to close on a property next Friday. I have left several messages regarding details that need to be discussed before the closing and the owner is no longer returning my calls.
I know there is a lot of competition in my market so I am sure she has had other offers. If I have a signed P&S (which I do) what is my recourse? Can I cloud the title? Can the signed P&S prevent a sale to another party?
I am out over $2000 in atty fees, etc... to date. I am asking my atty for his suggestions but thought I would ask this board their opinion. I don't want to play hard ball but hate the thought of the time/ money I have invested so far is a loss!
I welcome all input. :-(
Can you in your state record the PS or a memorandum without her acknowledgement? That would cloud the title. You can of course sue for specific performance.
WHy the attorney? 2K is huge! and generally not all that necessary.
[addsig]
If you know where they live go to their house and try to discuss. If your county has a mediation program, you may try that to get communication open again. I would certainly let them know that you are aware of your rights to sue for specific performance.
What are the chances of winning a suit for specific performance? Can this even prevent her from selling? What if she already has?
Play hardball! Record an affidavit giving notice of your P&S agreement. The affidavit should prevent them form being able to sell.
I checked the registry today, nothing has been recorded saying she has transferred the deed to another party. Still no return to my calls. Still trying to get an answer from my atty regarding filing a memorandum. However if we do not close next Firday, she does not show up for the closing (plus her ex has to signa Power of atty for her to sigh for him at the closing) what is my recourse? The auction date was moved up to follow our closing date if we do not close. Won't it just go to auction?? Unless I tie it up and force her to sell to me? The bank will still incur fees (foreclosing bank) which she can't pay anyways...
Take a step back. I know you have $$ tied up in this, but think, what could have gone wrong? Don't assume she's doing another deal. If her ex has to sign, she may not have arranged that (or may not want to even ask, something made him the "ex"
. By all means, don't play hardball...yet.
Maybe visit her, but softpedal it as much as you can. Maybe ask her if it would be better for you (or your atty?) to get the QCD from the ex, and be prepared to make it worth his while. Better to save the deal--unless the profit numbers are razor-thin--with finessing and compassion than to try to convince a court to enforce a contract below (presumably) market value from a distressed seller.
Thanks Loon. My thought was to drive over there to see her in person to discuss. I hate the idea of being hardball.
However, I just heard from her...finally!! Everything is fine on her end EXCEPT she does not have a rental agreement yet. She has had 2 months to find a place. She has 2 "potential" places with a 6/1 move date. We are closing on May 28 with the stipulation she needed to move out by the closing date.
Now I am thinking I should move up the closing date to June 1st? I don't want to risk closing and she doesn't move. The auction date is June 8. If she doesn't move out, I do not know what to do. ask the bank to postpone the auction again? not sure if they will. plus if she hasn't moved in 2 months what is her incentive?
I am hoping she will sign a lease by Friday, I told her I will need a copy of it for my atty if we are to keep or push off the closing.
worst case scenario, she doesn't move out, the house goes to auction, I lose what I have invested so far (inspection, appraisal, prepaid insurance and atty fees) :-?
That is great for you that the seller still wants to sell. It seems you are trying to accomplish too must all at the close ... sign, close, and seller as you stated the "seller was to be out close BY closing date".
Have the closing agent or company "hold" some money ($1,000-$2,000) on the seller's side to allow seller to stay 2 days after close to do "final move out". I always provide that stipulation for my sellers when I write purchase contracts & counter with cooperating with other agents.
When the seller moves out and the place is clean ... you can tell the closing company to return the money to the seller. IF the seller delays moving or the place is not clean ... then the agreement should be the seller will default on having the $1,000 returned.
Good Luck,
Cheryl Lopez [ Edited by cheryllopez on Date 05/18/2004 ]
When I buy a home on foreclosure, I tell them if they move by specified time I will provide u-haul truck and 2 men to help them move . If they have to wait no help. you talk about motivated!
Thanks for all the responses so far.
I finally heard from my atty.We should proceed as if she will find a place to rent for June 1st. I can extend the closing until this date to verify the property is vacated.
I have a decision to make. If she doesn't find a place, I can let the property go to foreclosure June 8 and cut my losses or close with her in the property. I would have to draft up an occupancy agreement with "x" amount of time for her to move out and hold the amount from the close due to her in escrow until she moves out. If she does not move out by the specified date I would start the eviction process (2 months minimum) and use the money from the escrow to cover the eviction expenses. This would all be spelled out in an agreement. The longer she stays, the more money I lose (holding costs, lost time to rehab).
I am starting to think I should help her find a place. I don't think this offer would be welcome though?
There is a good amount of profit to be made so I will probably opt for the latter even though I may have to evict ( I do not want to have to do this).
remember "no venture no gain"
