Creditor Rights On A 2nd After Chapter 13 Is Dismissed
My wife and I bought our first investment property. Fixed it up in one month and put it back on the market. After 9 months and 7 potential buyers later, our realtor and her husband purchased the property. He was a mortgage broker. They told us that if we take a 2nd, they could purchase house now and would pay us off in a year. After making only two payments to the 1st (Washington Mutual) and us, they filed for Chapter 13 in August. Due to them not making the required payment to Trustee per their plan, the Trustee dismissed the case two days ago. What are my rights now to get my $40,000 back from these people or the property that I have a 2nd Trust Deed in. Any advise from experiences investors would be appreciated?
The only practical recourse you have is to foreclose on the property. Contact a company to initiate foreclosure for you - many title companies provide this service. The process will take around 4 months. At some point you will have to bring WaMu current on their loan as they will undoubtedly start foreclosure too. Given that, run the numbers up front to make sure that there is sufficient equity in the property to warrant this action.
Sorry, but I’m a bit confused. How is this breach of contract? And why should you approach the broker to pay her commission?
Even if the broker has an Exclusive Right to Sell listing, and the owner sells the property themselves, it just mean the owner still owes the commission to the broker.
Granted, if they try to get out of paying, then yes, the broker can go after them for their commission. But if the seller backs out of the deal with you, then you could go after them for specific performance.
Unless I’m missing something... ???
Although i new a was not responsible for the commissions i agreed with the seller verbally that if anything arose from this transaction that i would pay the commission fee. Well i will update you! I for ethical business reasons I contacted the listing broker and we nogotiated and i agreed to pay the commission and we closed the deal today . I was made aware that an offer came in to the listing broker while i was trying to close this deal with the seller. I then contacted the listing broker after i closed to discuss flipping the property based on that offer that came in while i was trying to close the deal so tommorrow will enter into a contract and close the new deal for $70,000.00 on a 21,400.00 investment
What should your profit be and how much comission did you pay?
The listing price I later found out was $89,900.00 and i contracted with the seller to purchase for $20,000.00 and i paid 7% comission which was $1400.00
She placed a cavaet on the propery and faxed it to my closing agent and he refused to close the deal until the comission was paid ,the seller had no money so in order to close the deal i had to pay this comission.
Can she legally do this?
>>>>Technically it might be a tough one for the listing agent to get their commission. Yes, there was a contract, but typically they do have to be the "procurring cause" of the transaction<<<
Unless the listing agreement contained an exclusion for the seller bringing their own buyer, procuring cause will not trump the listing agreement.
Jim[ Edited by jimandlacy on Date 10/25/2006 ]
Thanks to all for your input and suggestions! Moved on to new venture!!!!!!!!!!!!!!!!!!!