Should We Proceed w This Sale or Secure Another Buyer?

3 Replies

Long Post Warning:

Hi BP,

I am currently helping my mom sell her condo in Florida. Because she has a tax lien foreclosure sale looming in the upcoming month, we had to try and sell it as quick as possible and is why we went with off market, wholesalers, craigslist.. We couldn't afford to wait for loans to be approved if listing in the MLS.

We secured a buyer that offered 75,000 cash. Standard AS IS Florida contract written and executed by both parties to close March 19. Because we belong to HOA, they needed at least 30 days for approval. Closing date arrives, no news from HOA. Buyers ask for 2 week extension and we grant them this (written). 2 week goes by and no news from HOA. So I call to find out what happened. Turns out they never received an application. HOA tells me to call Tenant Evaluations. I call and they tell me buyer submitted application March 14th. (4 days prior to closing). And on top of that, the application was pending because they did not upload all the necessary documents to move forward and get it to HOA. Thus delaying the process and closing.

On the day of new closing, nobody from buyers side reaches out to us about another extension or any news. So I decide to cancel the contract and ask for a formal release and told them we would be claiming their deposit because of failure to perform. Buyers did not want to cancel nor give up deposit. They continued with their dealings and I started searching for new buyers. A few weeks go by and I'm able to secure a new buyer with a higher offer and faster closing. (them being fully aware of what's going on)

HOA cancelled interview with the first buyers (who breached) not new buyer and on this day the buyers threatened to sue me personally and file a lis pendens on the home if we don't sell to them. Mind you, they breached contract not once but twice for failure to perform.

I've spoken to a few lawyers. 2/3 Told me I pretty much have all the right and would win if goes to court. The 3rd lawyer advised me to go through with the sale with current buyers because of the risk of losing the home to foreclosure is a bigger worry than who's right and who's wrong. PLus court fees and not being able to sell to someone else. (to get home out of foreclosure auction is only $5600, but we don't have that) Plus if we did have that now, they'd still sue for specific performance. So the lawyer advised me to write an airtight extension/addendum that if they don't close for any reason they waive all their rights to sue and deposit. I wrote this and sent it last night & told them they have until today 5pm to execute and deliver. They are reviewing my new terms with their lawyer and have yet to get back to me. If they don't agree to the terms, we will not move forward with them.

How would you guys feel in this position or what would you do? Do you believe I'm wrong to give into their threats? If we had $$$ to pull it out of auction we would. And it's the only reason were selling. I am looking out for my mother's best interest and would die if I see her losing her only home to foreclosure or lawsuit.



Did you contact offerpad Opendoor or Zillow? If the original buyers don’t get back to you (sounds more like wholesalers.) then I would get offers from those 3 companies that promise fast closing with cash just to make sure their sure thing isn’t nearly as much or more. You can even contact them while this is going on. 

Originally posted by @Bill Brandt :

Did you contact offerpad Opendoor or Zillow? If the original buyers don’t get back to you (sounds more like wholesalers.) then I would get offers from those 3 companies that promise fast closing with cash just to make sure their sure thing isn’t nearly as much or more. You can even contact them while this is going on. 

Bill I bet your right good chance wholesaler who cant resell and cant perform.. maybe not.. but sure sounds like it this is the risk you take when you think MLS is a problem.. you can list on MLS and say cash only you would have 10 offers with realtors who know what the heck they are doing.. amazes me that people think off market is quicker simply not true.. It would be if you dont say in the listing CASH ONLY and price it appropriately heck an agent would probably buy it. :)