Uncooperative Seller
Here is the situation:
Property is in Delaware.
Owners are Jane and John.
Jane and John are divorced.
Jane lives in Alabama.
John lives in Virginia.
Property goes to sheriff sale July 8.
Payoff is about $30,000
Spoke with both separatly and they areed to sell property for $31,000.
I found a third party buyer today who signed a contract for $38,500 and gave me a $500 deposit--we are to close July 7. I called Jane to finalize sales contract and she was uncooperative--I don't think she is going to sign contract now. I sense that she is willing to let this go to sheriff sale just to spite her x-husband, John.
So, what would you do? My buyer is probably willing to change closing date to after July 8. So, I could buy at auction and then assign.
Can you assign a contract from a sheriff sale? If not, what else could I do?
Oh, yeah--I'm the only one who has a key to the abandoned property.
Thanks,
Kyle
FirstPsalms,
Kyle try this one.
"Jane, I understand you not wanting to sign the papers, I thought about it and it isn't fair you only get $500, so I see no reason not to give you $1K, my only problem is you would have to promise me not to tell John that you got twice what he did."
It may cost you an extra $500, but Jane won't be able to stop smiling for quite awhile.
John $Cash$ Locke
I nearly fell out of my chair laughing when I read your response John. Dead on. You took her motivation for being your enemy and turned it into her motivation for being your friend. Very Aikido.
Perfect.
btw... I've been tied up 16+ hours a day lately and haven't been able to take calls or do much of anything else, but that will be letting up in the next month or so and I'll be getting your course. I like the way you think.
John,
Thanks for the advice--I'll give that a shot!
Kyle
John--
Forgot to ask-- How would I guarantee her getting paid? Would I use a bill of sale or a promissory note?
Thanks, again.
Kyle
Kyle,
Just about any note will do as long as it is in the same key Jane will be singing after you tell her how she out foxed John.
John $Cash$ Locke
She is guaranteed to be paid out of the Purchase Agreement....
That's what's so fun about this business--never a dull moment. This should be interesting.
Thanks,
Kyle
Well, today is July 7. This house is to be auctioned tomorrow. I got a call today and now Jane is willing to sign. 24 hours to go and now she is willing to sign. Brilliant, Watson.
She is still in Alabama. I advised there is probably nothing I can do--but, I would try.
Anybody have any 11th hour advice?
Thanks,
Kyle
Did she offer any reason why she left it so late? Does she expect that the damage she wants her ex to feel will also be visiting her?
Lets us know if you get it before or after the sheriff sale.
John
[addsig]
Her X paid her a visit and somehow convinced her.
What I don't understand is why he didnt take the sales contract with him and have here sign it when he visited her.
Anyway--is there anything that can be done before tomorrow here??
Kyle
You had earlier implied that if necessary you'd buy it at the auction so I assume that you have the cash available to pay off the note. Find a RE attny near where Jane lives. Let her go to his office and sign a warranty deed today once that is in his hand (he can send it to you later as long as its in your agents hand and not hers) trot down and pay off the loan. Schedule your closing.
Alternatively, does DE have a right of redemption or some other waiting period after the sale? You might not have to get this done today.
Quote:
On 2004-07-07 09:17, commercialking wrote:
Find a RE attny near where Jane lives. Let her go to his office and sign a warranty deed today once that is in his hand (he can send it to you later as long as its in your agents hand and not hers) trot down and pay off the loan. Schedule your closing.
Great save! I didn't know you could do that. Thanks Mark.
Robert
Mark--
No redemption rights in Delaware.
Also, I don't have the cash--my buyer does.
So, let me see if i have this right:
1. find a re atty in Alabama
2. get the husband to quit claim to wife
3. get wife to warranty deed to me
4. have my buyer go to the courthouse before the sale and pay off the loan
my buyer has no protection this way, do they?
Thanks for the input.
might want them both to deed the house to you as opposed to one to the other and then to you.
my .02
Already have the quitclaim in process.
located an attorney in huntsville, Alabama who is waiting for me to forward the warranty deed to them via email.
My concern is: I dont have the cash--my buyer does. Although my buyer understands my role is just as an investor looking for an assignment fee--they are willing to pay me commission.
I dont want to do a double closing, if possible. Who should I have the seller deed to? me or my buyer?
Thanks.
Kyle
In some states its even legal for the deed to be made out in blank and a name filled in later.
Thanks for the advice and warnings.
The sellers have had 4 months to take care of this with me. I have decided there is too much risk and headache to try and stop this one. John Locke taught me one crucial thing: learn when to say "no". I said yes for 4 months when it would have been easy for all involved. Now it has become a risk for me if I say "yes" at this hour.
I talked to my investor. He has agreed he will just try and pick it up at auction tomorrow. He even offered a $2k commission for me if he does.
I really appreciate you all looking out for a fellow investor.
Kyle
Property sold at auction for $48,500. Someone else got it.
On to the next one...
Quote:
On 2004-07-08 10:49, FirstPsalms wrote:
Property sold at auction for $48,500. Someone else got it.
On to the next one...
Good attitude. There is no point in risking yourself when all of the pieces aren't in place yet.
Robert