Updated about 22 hours ago on . Most recent reply
So Confused in Texas.
Hi everyone, I am in a heap of trouble I do believe, I am wanting to sale my 3bdr 2bath double wide mobile home on a 0.465 something of a half an acre in Mineral Wells ,Tx. so I found someone who will buy my place for cash as is and do it pretty quick. I am facing foreclosure and behind 29k in taxes. No liens or anything like that. So I signed for 53k well the next day which was yesterday I get a call from another investor who would do 65k but I already signed with investor A. Andi signed with investor B. How do I get out of either one ? Oh investor B contract states that they will pay me my 65k but first they are going to sale the contract or property to a 3rd party but the first have to find a buyer. HELP ME
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#2 Private Lending & Conventional Mortgage Advice Contributor
- Investor
- Poway, CA
Why would you sign agreements to sell to two buyers? I think you should consult a legal expert. You cannot satisfy both contracts that you agreed to. There could be consequences to you for signing a contract but not be able to perform to that contract.
The second buyer is up front as a wholesaler. Props for that as many wholesalers are not as upfront. His contract states he will buy at $65k only if he finds someone that will purchase it from him (implied is at a price greater than $65k). That is basically what a wholesaler is. wholesaler’s get a property under contract at a certain price and sell that contract at a profit In rare cases they do double close which means they purchase the property and immediately sell it at a profit.
Let’s say 2nd buyer exerts effort and finds a buyer at $75k so that he should be entitled to to $10k profit, but does not get the $10k because you signed a contract that you do not perform on. He has $10k of damages. Do you think he will be happy? Do you think he may desire you to compensate him for his efforts from the proceeds of the sale? In this case you could owe the second buyer $10k.
Either buyer could potentially hold up any sale except the foreclosure.
You have created a bad situation for yourself.
Get legal advice. You may need it. Also do not sign contracts that you cannot perform on.
Good luck