Help - Private mortgage holder will not provide payoff amount to title

[Bill S.]

I have a wholesale deal about to fall apart. The seller's mortgage is a private mortgage (1st only) with an old RE agent who is 93. I have the property under contract and it's a good deal (not a great deal) and the mortgage holder (old RE Agent) doesn't want to be paid off. He is refusing to provide title with a pay-off amount. There is no prepayment penalty in the note and it is a strict due on transfer note. I have a copies of both the note and the Deed of Trust. My closing is Thursday so in 3 days. My buyer is saying they are going to walk and want their earnest money back because we can't get a payoff. They have said they will close if they get a payoff. Any suggestions about how to keep the deal together?

Thanks.

[Bob E.]

Whoooo there Nellie.  Nobody is going to get anything resolved with a lawyer in three days.

You need to find a way to solve this gentleman's problem.  That could be loss of income or being forced to realize a gain all at once.

Here is an idea:

Why not offer to transfer the sellers note over to the new buyer?

How much is due on the note?  What is the interest rate?  You could also offer to replace the note on this property with a not on a new property.  I could find high quality paper at 8% no problem.  Careful shopping might do a little better, if the issue is taxes maybe a better rate makes it worth while to make the switch.

Instead of staring a nuclear war with this gentlemen, find a way to solve his problem.