All Forum Posts by: Tom Gimer

You can't take an element from state X such as "uniqueness" and try to apply it in state Y where that appears not to even be part of the analysis.

Let's see how this turns out.

If I was in this situation I would hire an attorney and going forward follow the contract to the letter, documenting each breach but also clearly demonstrating readiness to close on the settlement date.

And yes, I would have the lawsuit and lis pendens ready for filing before that date passes.

"I changed my mind" is not a defense and if the seller truly put that in writing and OP doesn't otherwise bungle this by missing a deadline, etc., I sense this could be a winner. Getting that won't be cheap but apparently neither is this investment.

@Matt Wan Many lenders require wet signatures on at least the Promissory Note but if yours does not, as a US citizen you could do the entire signing anywhere on the planet with a good internet connection + mic + camera via Remote Online Notarization (RON) for less than $200.

If wet signatures are required, the answer then depends upon what foreign country you are in. If that country is part of the Hague Convention, a local official can handle the signing and attach an Apostille authenticating the document(s). If not, you'll likely need to sign at the US consulate/embassy... and those appointments often need to be scheduled well in advance.

@Ryan S. This is purely a state law issue. You're going to want to review the case below and any that have expanded upon the issues cited within it since.

https://law.justia.com/cases/colorado/court-of-appeals/2003/...

Good luck.

FYI I've seen subto contracts which provide for ~$50,000 in liquidated damages against a seller that reports the sale to the lender and that results in the loan being called. How do you think that provision would fly in a deal that goes sideways and ends up in court?

@Joey Chalhoub This decision should be read narrowly to address statutory frameworks such as MN where state law permits it to take property to satisfy real estate taxes/penalties/interest, sell it, and keep any surplus outright. That violates the Takings Clause.

MD can be distinguished (in fact MD was mentioned in the decision) in that there IS a process on the books for the foreclosed owner to petition the court for the surplus. Is that process too complicated, yes, but there is nothing in this decision that will prevent a tax sale purchaser in MD from reselling at a profit after obtaining the property by foreclosing the right of redemption.

@Kayla M. We’re well connected with the Baltimore investor community — all neighborhoods. Shoot me a PM or email if you want help unloading this property to another investor. 

Ordinarily those tenant vacated damages would be too remote, but it sounds like they were contemplated by both parties at the time of contract.

Were I in this situation I would be looking to state law to determine if the EMD is truly the extent of my potential liability as a buyer. Based upon my research findings I might also start thinking hard about that heater.

OP should try less whining about James and more finding a way to close...  such as by including affirmative coverage for forced removal in the loan policy. 

If this encroachment is truly a matter of inches is anything going to come of it? No.