Can I get my EMD back? Wholesale deal from hell!

[Mike Nelson]

Listen I know I went about this the wrong way but this was a steal of a deal. With that being said heres the details. I sent 2k EMD to the seller of the property through paypal (dumb I know) the seller didn't want it to be through the title company.

I got the property under contract and had an end buyer ready. We had a closing date, two days later I get notice from the title company that they will not insure the title because the seller (who had power of attorney to sell for his mother) had drawn up a promisary note to be paid out to his roommate for 80% of the sale price and the other 20% going to him for his services. In other words the mother wouldn't be getting anything, the closing attorney said that the poa couldn't get paid because he was in the deal. Basically, the closing attorney gave the seller 3 options to make this deal work, the seller said that he wasn't going to do any of them and the contract expired.

My question is, did the seller deafault? and if he did shouldn't i be able to get my money back? The seller has been ignoring me and hasn't returned any of my txts or calls.

[Jon Holdman]

Not a lawyer, and you probably want to spend some time and money with one. Sure looks like this is the seller's default to me. The seller couldn't deliver a good title. That's usually one of the terms in the contract. Did you use a standard contract? Does it cover this?

A better question is how do you actually get your money back. This guy certainly appears to be a slimeball. Selling his mom's house and pocketing the proceeds. Of course, perhaps that's exactly what she intended, but combined with having the money go to the roommate and it being a "steal of a deal" I wouldn't take that bet. Have you contacted paypal? Do you have any information about this guy? I see a lawsuit and an noncollectable judgment in your future.