OMG IM BEING SUED!!

[Juliana Cortes]

I went under contract with my seller. He hasnt paid the mortgage in a few years. His statements show he owes 262k so we go under contract at 268k since all lis pendens were dismissed without prejudice. I find a buyer who is using a buyers agent. I told him about the assignment but he doesnt know what an assignment is so after consulting with his attorney, they say to use the FARBAR and we'll assign it at closing instead. I told them multiple times that I was still waiting for the payoff from my title company. Fast forward 2 days and we finally get the payoff at $377k! I let the my buyers know of this problem and let them know i cant close because of the WAY HIGH payoff. The lawyer now wants me to pay for his buyers fees and damages / sue for specific performance. WHAT DAMAGES?? IF I CAN CLOSE AT 270K I WOULD.

What direction should i lean towards? I used the standard FARBAR that states that my buyer pays closing costs, fee, title search, and doc stamps. I know that since you are not my attorney, this is not legal advice. I just need to figure out if im actually in the wrong for this or if im safe and wont be forced to pay ... I dont even know WHAT im paying for since I ran the title and lien search with my title company. Technically this is a nonmarketable title right?? I know this is not my fault but will the judge see it the same way??

please help :(

[Patrick L.]

Not sure why you figured the payoff would only be a few thousand more than the original principal balance when the mortgage hadn't been paid in years and a foreclosure case had been filed. Tack on all back interest, legal fees, property preservation, taxes, insurance, etc and you're going to going to have a payoff amount much larger than just the UPB.

This is what happens when you don't do you research and when you start dealing in things you aren't qualified to handle.  If you had a license you'd probably know to get a payoff before you start trying to sign contracts with someone else.  You'd probably have the buyer sign disclosures and add a condition about the maximum payoff amount to sell at that price.   Instead you're running around acting like an agent without a license and without the understanding of what you're doing and of course you're going to open yourself up to being sued if you screw up.