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Updated over 10 years ago, 06/05/2014

User Stats

74
Posts
20
Votes
Sarah S.
  • Flipper/Rehabber
  • Houston, TX
20
Votes |
74
Posts

Help! Uh-oh...deal going wrong & advice needed

Sarah S.
  • Flipper/Rehabber
  • Houston, TX
Posted

Been doing pretty good lately with deals and one final one is starting to take a turn. Had a seller in foreclosure call wanting to sell under any condition because home was days from foreclosure. We managed to help save the home and obtained under Subject To. The gentleman has absolutely nowhere to go so when he asked if we could give him some time to remain in the property to allow for finding a place to stay, having a soft heart, we agreed and gave him until tomorrow. We decided we want the home as a personal home so goal is to take subject to and buy outright in about 6 months or so. Up to this point all was going well but past two days we have had a hard time contacting the gentleman. Three days ago his phone was disconnected so since communication is imperative right now, we paid for it to be refilled. Long story short, we have arranged for all utilities, etc. as far as moving goes to take place this week. Just received a call from him but now he states he has no where to go, he has a non-running vehicle on the property he has no where to put as of yet (also new news today) and contract states he has to be moved out and keys turned over to us by 1pm tomorrow but now he says he didn't plan to be out by 1pm. I just have a funny feeling he will not leave tomorrow as the contract says. We are paying moving expenses of $1,000 to him due tomorrow and that seems to be the only correct thing in his memory bank. We already have deed signed by him. What, if any recourse do we have if he doesn't comply and leave as planned tomorrow? I know there is always possibility he can cause problems by notifying bank and they can call loan due but he is not that knowledgable to do. The home has about $40K equity in it and contract is assignable, if needed so what can be done if he stays. Can we legally kick him out with his name being on the loan still? Do I assign contract and let someone with more experience deal with it from here so we can recoup some of our expenses to this point? Or just void deal and cut my losses? If walk away is the answer, what do we do with the deed now? Just learned a tough lesson and any advice is appreciated. Not sure what to do now.

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