What to sell when you have to sell something

Question

Hi all, I have to raise enough money to fund a lawsuit. The lawsuit isn't a slam dunk, but if it works out, it would reverse a big loss caused by a forgery done by a real estate agent (who is no longer in real estate, thank goodness). Because it isn't a slam dunk, it's not the kind of thing a litigation lender would want to invest in, so I'm assuming I'm on my own.

There are two properties I can consider parting with, and they're very different. I think they'd take about the same length of time to sell, so that's not a factor.

One is a paid-for mobile home, nicely upgraded and maintained, on a big lot in a semi-rural area. My tenant pays the insurance and property tax and all the maintenance, so it's headache-free, but not very lucrative. My proceeds would be enough to meet my current needs.

The other is a co-owned duplex in a slowly up-and-coming part of Los Angeles, the rare duplex mainly single-family dwellings. This one is also headache-free, because my co-owner handles all the expenses. I'd be giving up $240 more in steady monthly income, but I'd net about $40K more than I would with the mobile home. I might not need it for the lawsuit, but I could pay off a tiny loan on another property with it and eliminate a $400/month loan payment 6 years early. (Or, I might need it for the lawsuit.)

The $40,000 difference in proceeds is working pretty hard for me in L.A., given that the property sends me $249 more per month than the semi-rural mobile home does. I'm inclined to sell the mobile home because of that.

On the touchy-feely level, I like the duplex and the neighborhood, whereas I wouldn't be sorry if I never saw the mobile and the town it's in again. If I had to move into one of them, I'd choose the duplex in a heartbeat. (Almost anyone would.)

Is there anything else to consider?

Account Closed · Answer

Caroline C. First you would file a police report. Next, you would want to go after the liability or "Errors & Omissions" coverage of the Broker that the real estate agent worked for. Send a "Demand" letter outlining the incident and the amount of damages to the Broker by Certified mail. Then you want to file a complaint with the State. Then you want to call the local  universities to see which ones have law clinics. Meet with them and show your evidence. If they think it has merit and can be won, they will take the case pro bono (no fee). Once a case gets filed in California, I think the trial is set out for about two years away depending on case load. During the two years there are depositions, interrogatories and various court appearances and Motions. Some 95% of cases get Settled prior to trial. If your case is strong, it will likely be Settled. However, Forgery is very, very difficult to prove. You would have to have the Notary that witnessed the signature or the signing on Video or some other very strong evidence to be convincing in court. If you win in court, the forger might be able to  file bankruptcy and wipe out the debt. Collecting after winning a court case is entirely different than winning and not automatic nor guaranteed.

This is Just my opinion. I am not an attorney no do I play one on TV.  This is not legal advice and you should consult a competent attorney in the county that the property is located if you wish legal advice

Caroline C. · Answer

Thanks for some very good suggestions, especially about legal help. So far, I did report it to the police. Some dude who makes $247,000 a year brushed me off because I reported it a year after it happened. I then went to the County of Los Angeles Department of Business and Consumer Repairs. I talked to one of their employees about what had happened, and he decided to pass it along to the DA. I got a call from someone at the DA's office, call him back, and didn't hear back. So, it's my turn to call. If nothing else, it would be helpful in a civil suit if the defendant had been arrested for falsifying the document.

I should clarify about the forgery. It's unmistakeable, but I had it I verified by a qualified document examiner anyway. It was a cut/paste/photocopy job. Someone, either the real estate agent or perhaps the escrow officer, cut my signature out of a copy of a set of amended escrow instructions that I actually did sign, and taped or glued it onto another amended escrow instructions that I absolutely did not sign. They made three mistakes.

The first was that the document they took my signature from was somewhat enlarged relative to the one they stuck it to. The word "sellers" above the line I signed my name on was bigger than it was supposed to be, which was obvious when compared to the word "buyers" on the other side of the page. Second, they didn't place the cut-out signature correctly. The word "seller" and the line I wrote my signature on are not horizontal. And, of course, the signature on the original document and the signature they taped to a blank form are exactly the same.