All Forum Posts by: Griffin F.

@Account Closed @Jon Holdman @Wayne Brooks

Thank you for your insight. 

I suppose I will let this one take its course and move on.

Hey all,

I am hoping to gather some opinions over an odd situation I am in over a potential deal.

Recap:

Firstly, this is a would-be fix and flip. The seller and I had initially agreed on a sale price and have a signed P&S between us.

Now, let me explain the issues and how the seller originally acquired the property. Back in December 2014, the seller acquired this property via a judgement lien - from the previous owner who was in foreclosure. 

The seller and I made it to a couple days before closing, before realizing the title was clouded - reason being - the previous owner (the guy who was foreclosed on) had filed a mortgage appeal - I guess to try and get the house back. This appeal was open for 20 days. So, closing was delayed.

As time passed the current seller was getting frustrated. Now, comes June 29th where the seller made a court date to motion giving the property back to the previous owner - essentially voiding the process he had just gone through months earlier to acquire the property in the first place.

He has said he will no longer sell to me - he'd rather go through the court to try and give the house back. Somehow, he makes off with more money this way, compared to if he sold to me. However, he had said that if the motion in court failed, then he would sell to me.

Yet, we are under contract. The seller and his attorney have not responded to my nor my attorney's contacts.

So, where I stand now is evaluating my options.

A) I can put a lien on the property over our contract. But, this is essentially a lawsuit. I would have to get a prejudgement remedy from the court. According to my attorney, this is costly and he isn't heavily recommending this ( I am getting other opinions - and hope to get some here too!).

B) Have a marshall file a summons to the seller regarding the breach of contract and recover my current expenses.

It is a great flip project and would be a shame to lose it, but it has come to a point where I need to either move on, or execute another move.

I am weighing out my options. I haven't had any similar experiences to this one.

All opinions appreciated!

Well Done, @Todd Whiddon ! The finishes are beautiful. That shower is amazing, you find out how many you can fit in there?!

Also, I'm glad you brought to light how new construction can bring many additional expenses ... $10k for just fencing and erosion control, engineers, and lots of dirt! Shows what a different ball game it is.

Looking forward to definitely getting to this one - first time!

@Ian Ray Seller financing for short terms can definitely be done on a fix and flip. It is an opportunity for you to leverage at a better rate than an HML or private lender and an opportunity for the seller to receive more money - so long as they're willing to wait 6-12 months to receive their money. It is always worth entertaining as an option. Negotiate!

@Mike Henkel Way to take massive action!

@Rick H. Thanks for the insight. I'll keep my foot in the door and see if I can get these closed. Learning experience if nothing else.

@Tarl Yarber Way to go! Also, seems like you've got a great financing system too.

@Rick H.

Based on what the seller has told me, my offer does clear all estate expenses and has some equity. The lien is judgement. Yes, probate has been filed by the seller (administrator).

I am looking to buy the property. Logically, I'd like to think the court will see my offer covers expenses and would sell to me, but my concern is in the fact the seller (administrator) is giving up his right as admin because he cannot pay for an attorney, thus our agreement will be irrelevant from the courts perspective.

P.S. - Talk about luck - I am dealing with another probate deal where we came to a verbal agreement on a sale price and it has come to a halt because the seller (who is also an administrator) failed to disclose a tax lien so the deal is in the courts hands as well, it seems.

@Jonathan Makovsky Great to have options. Good Luck!