so how do would you handle this

mistermonopoly profile photo

tomorrow i close a deal and the seller 1st said she eas not going to leave the home until june 14 now its july 14 and she has no intention of paying any thing while she is there i was okay with june but another month means more $$$$ for me and i just dont have it there is nothing to renegot. about because she is giving the house to me and asking nothing in return
if i could just get her to pay half the note for july that would help what should i do the margin aint that big to where i can just grin and bear it surprised

Comments(4)

  • JohnLocke17th May, 2003

    mistermonopoly,

    You are not going to want to hear this part but the next move out date will sometime in August then on and on and on.

    If I were in this situation, I would put the house on the market, explain to your seller what you are going to do.

    I would work out some type of terms where she gets a taste of the deal, or what I call move out money. Keep what you are getting to yourself, sounds like if she finds out what you are getting you will be the one getting a small taste of the deal.

    I could go on about how I would have structured the deal from the start, but that doesn't help now. So either get her to agree to move out when you find a buyer or go on to the next deal.

    I see some sleepless nights if you try to pursue this deal without getting it locked up now.

    John $Cash$ Locke

  • KP17th May, 2003

    I have to agree that there will be another move out date set for August.
    I sympathize with the dilemma of having gotten an agreement that has her just giving away her equity and leaving you feeling beholden to her. However that can't be the wording in the contract. What does the contract say? Does it grant her any rights of possession after June 14? If not then she doesn't have any. It sounds harsh to say to someone who has seemingly given you something but in effect she hasn't. She must have been in a difficult situation before you came along and agreed to this contract with her. What you have likely done is taken that burden away. For that you should be given the consideration of her getting out so you can make your money. You can remind her (gently) that she got herself into whatever situation she is in and if she doesn't work with you she can still live there until July 14 but she'll have to deal with the bank or whoever it was that was forcing her into distress.
    In any event you may have some rights under Landlording laws but they would not get her out before July if she is determined to stay.

    If you cannot secure your position and protect yourself from her squatting then I also suggest not signing tomorrow. Perhaps your contract gave you a built in extension? Maybe you can stall settlement until closer to July 14? Wish I could help more.
    [addsig]

  • mistermonopoly17th May, 2003

    thank you for stressing the importance of getting a mutual understanding so i got to get her to leave or at least sign a paper saying she knows she has to leave when i sell .
    ok i got that but is it ok to have showing while she is living there she said she would leave out if i gave her ample notice what is your feelings about that
    john what should we sign today purchase opt
    lease opt
    quit claim
    w/d
    i dont know:-?
    but i need to mininmize my liability right ?

  • PositiveDestiny17th May, 2003

    Hey MM:

    I assume you're doing a sub2?

    I'd suggest that you are in a really precarious position right now...

    You've got a deal that you don't want to let go of (understandably), but she's got a house that SHE doesn't want to let go of. And methinks you're about to become a free housing ticket for a period of time that you won't be able to control if you close your deal with her still in residence.

    Since it sounds like she has shown her colors (and I'm speaking as though the worst case scenario is the case), I'd wonder whether you have a deal or whether you have a red herring, a gonna-be 'squatter' and someone else's mortgage to pay (without compensating income.)

    It won't take long to eat up a lot of equity in this kind of situation, and you won't even be safely in control of that equity....

    You might have some leverage to get her out under landlording regulations, as was mentioned above, but she has the big gun to point back at you if she gets really defensive about being pressured to move against her will..one call to the mortgage company could change 'the deal' very quickly...

    It might also be worth noting that your 'redress' under most states landlording laws is relatively time consuming (you said your margin wouldn't support even a month's worth of her mtg...), and, when/if she goes to the Judge re eviction and explains how she got into this eviction mess.......(ugh..not a pretty meeting, in my mind...)

    From a landlord's perspective, showing a property with a tenant in residence(especially an antagonistic one!) can be a nightmare!! You cannot just enter the place...that's illegal. She can make it very hard to schedule showings, and when you DO get in, what are your buyers likely to see? (probably not the property's best presentation?)

    Will Uhaul money get her out? DO IT if you can put the money together. If you can't or she won't, maybe you should consider ammending the deal to close once she's out, but promising a token piece of the pie once you've done your exit deal (going to depend on your exit strategy and your profit potential...)?

    Barring those ideas, perhaps you can resched to close the deal in a month so, AFTER she has moved, thus putting her back on the hook for her own mortgage in the interim? (get a contractual commitment from her, though, and record it to cloud the title, methinks)--perhaps just realizing that you quit being her 'White Knight', her 'Angel', will change her mind...she'll be right back where she was before you came on scene to help her out of her woes.

    Finally, hard as it's going to be to walk from this one, it might be a deal that you want to say goodbye to (make sure she has your contact info, she's gonna come back to you) because it sounds like you could be taking a bath before this one is over...

    IF she's as antagonistic as I've presumed in this post, you CAN'T do the deal with her still in the property. In my opinion, you'll lose, painfully.

    Sure do wish you well!!

    Mark

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