...ack...gritted Teeth...sellers!!...

[AmyB 0]

I put a LP contract on a very nice house that the seller was still living in, 3 mos. ago. They seemed overwhelmingly agreeable and ready to move the house and on and on...you know, oh SO flexible on purchase price and payments. I didn't think I needed them to be, they were willing to carry it for "as long as necessary" and I knew there was a good spread on this thing. I busted my butt and got the TB's under contract (SLO) and do everything the way the seller asked and they sit us down (couldn't just tell me on the phone) that they really just need to sell and dont want to do LP.

 

WHAT?!? You couldnt decide this 3 MONTHS AGO?! or how about when you were at the house and I showed it to them and you wanted me to GET in there and get the house sold?! There was $65k spread, and a TB under contract so we are seriously considering just buying it. Figuring since they were so flexible we'd reduce their price for the amount of closing costs. Wrong..."THAT price was firm." Last night they emailed wanting $1k earnest money (I haven't given them a new contract YET) and a letter saying the LP agreement is null and void "for their records." I told them we'd first have to discuss my fee for the 3 mos work I'd done.

 

Now...in their defense I realize they are older and the reality of 2 mortgages nearing their retirement time, finally sank in. But this has put us in one heck of a position. The only thing saving us is that the funds from the TB's IRA aren't here yet. ($6500 non-ref option money) I guess we're still kind of angry. And I don't think we're taking it personally, it gets old when these people change their minds. And that is why CA's are appealing to us!

 

We have seriously considered telling them to forget it. They have absolutely no idea how they've screwed up my sweet deal! Obviously we have to add in all the closing costs, not to mention sharing it with my partner who would get the loan.

 

I've said all that to ask this...since we haven't made the first payment, but we in good faith went and got the TB under contract, do we have any leg to stand on? Probably not. The lawyer didn't think so...but I didn't like her. And besides that, who would want to have to deal with them for a year or two if it was a forced sale. What would you guys do?

[JerseyJeff 0]

AmyB,

 

If your agreement with the homeowners was based on a handshake, then I would say you don't have any legal leg to stand on.

 

Try to get a fee from them for time spent (although I don't know why they would agree to it) and move on.

[Doug Pretorius (ON) 9]

Amy, do you have NO contract with the seller at all?

[Gordon Holtner 0]

Hi Amy

 

If you had a contract with the seller and it sounds as if you did. But was going to give them a new contract? If you had the L/O with them in the first place I don't know why your lawyer would say that. I'd say if you could still salvage the deal in some way try to do a CA give your TBs what they want then tell the owners to refinance on an interest only loan and try to give them some cashflow. Or you could tell the TB's that the homeowners are having trouble with their payments and that you'll refund their option

money. The Tb won't appreciate that they lost their home but your honesty might catch them off guard then get your lawyer to make a release or waiver to get the TB to sign so they can't sue you later even though you refunded the money. This is only a suggestion since I am not a lawyer or have done any SLOs in my life.

[MichaelC 160]

Amy, I'm sorry but I'm confused. Do you have a contract with the homeowners? If so, could you give some specifics as to the terms, particularly as they relate to this issue?

[AmyB 0]

Amy, I'm sorry but I'm confused.  Do you have a contract with the homeowners?  If so, could you give some specifics as to the terms, particularly as they relate to this issue?

<{POST_SNAPBACK}>

 

MC - Absolutely, a lease purchase contract to buy for 285k, $1500 a month and $500 a month rent credit, no expiration...in other words pay for as long as we want to.

 

The new contract meant a reg. sales contract to buy for $285k - not a LP contract.

 

Jeff...there was a contract, see above.

[Kimberly 0]

a lease purchase contract to buy for 285k, $1500 a month and $500 a month rent credit, no expiration...in other words pay for as long as we want to.

Not an attorney, nor do I play one on TV, so take this for what it's worth. Without a time limit -- expiration -- in the contract, you may well have difficulties getting a Judge to enforce it.

[AmyB 0]

a lease purchase contract to buy for 285k, $1500 a month and $500 a month rent credit, no expiration...in other words pay for as long as we want to.

Not an attorney, nor do I play one on TV, so take this for what it's worth. Without a time limit -- expiration -- in the contract, you may well have difficulties getting a Judge to enforce it.

<{POST_SNAPBACK}>

 

I think that is true but not for that reason. Because we hadn't made the first payment starting the actual lease term. How do you figure it's hard to enforce without an expiration?

[MichaelC 160]

Amy, that's a tough call, and one I certainly can't make. Your best move would be to speak with an attorney or two. Have 'em take a look at the paperwork involved and make an informed decision.

[Kimberly 0]

How do you figure it's hard to enforce without an expiration?

<{POST_SNAPBACK}>

The same reason a RE Agent can't get an open ended contract to sell a house. You could decide you wanted to exercise your Option now, in a year, ten years, or 30 years down the road. I just don't believe, there is anyway a reasonable Judge would enforce it. Doesn't mean that it couldn't happen, I just don't see it.