Memorandum & Release of Lien

Memorandum & Release of Lien

Allen, TX · Member since 2016 · 15 posts · 26 votes
Help is appreciated on my first wholesale contract. I put a property under contract with a 30 Day Option period. After we signed I could not find a buyer. (I offered about 20k too much) Seller wouldn’t go down. I filed a memorandum at the courthouse. Option period passed and we had no sale. A month late the seller calls to ask why I put a lien on the house and if I’d release it by Friday. I don’t mind doing it but not sure how to. Do I wait for the new buyers title company to reach me or is there a specific form I can print and get it over with? Does it have to be notarized? Where do I send it? She’s also upset that we had a contract and I didn’t come through. My contract specifically said it was Contingent upon further inspection and my approval. Thanks in advance. Angie.
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Ned CareyPro Member
Moderator
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
8y

@John Thedford  think you have been a little harsh on @Angie A. Yes she has done something unethical, however she was sold a dream and given bad information on what to do to reach it.  Yes she should have considered how the memorandum would get released when she recorded it. More importantly she should have dealt with it faster. However I still put much of the blame on the people teaching this stuff. 

What idiot told her "And this is something I was told was required to do"?   Also Angie was told she could charge a fee for the release!   Who is teaching this stuff?

Angie made a mistake and came to us for help how to rectify it. Her mistake was one of ignorance (negligence) not of malice. The smart people here, (John is certainly in that group) should first strive to educate, then if appropriate reprimand.

Regarding how Angie should proceed, clearly her attorney should address this ASAP. However if it were me I would write up a release, this release would reference the original recorded document with liber and folio, have it notarized and record it in the land records. 

Angie you should realize that what you have done is a very serious issue. This is certainly a Tort (something you can get sued for) and might possibly be criminal. It sounds like you are hanging around and or listening to the wrong people. 

I hope, Angie, you learn from this. There are many lessons here. One which is not obvious is that another wholesaler cannot legally take your deal. It is called "interference with a contract" Another lesson is; you need to KNOW you deal is so good it will easily quickly resell or you need to be in a position to close on the deal yourself.

Regarding how I would handle it if I were the VICTIM, I would move forward with any sale or marketing efforts. This cloud will get dealt with eventually and if it temporarily blocks a sale, that only increases the damages she could claim. At the same time I would talk to TREC and/or to an attorney to file suit against Angie.

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  • Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    8y

    @Greg H.

    @Russell Brazil

    @Ned Carey

    @Ned Carey@Angie A. 

    OK looks like a good learning experience and good advice from the mods as well.

    When I say get an education that is not meant as a slam but rather advice. I am 62 and still getting mine and truthfully I love it!

    As @Wayne Brooks said don't believe everything you are told. Nobody should.

    Consider long and hard before promising to purchase with no ability or intention. Sellers are people too with needs, feelings, hardships, etc. Get your money lined up, purchase, and then resell. Everybody gets what they want.

    p.s. Angie: if you run in to people teaching and promoting dishonesty you CAN educate them...and tell them YOU won't operate that way.

  • Fontana, CA · Member since 2017 · 18 posts · 5 votes
    7y

    @Angie A. Did you get this resolved? What paperwork did you use to release the memo?

  • Member since 2019 · 113 posts · 25 votes
    7y
    Originally posted by @Angie A.:

    Thanks @John Thedford and @Wayne Brooks for the support! I'm new. This is my first one and in no way was I trying to be malicious or hurt the seller. There were other wholesalers trying to go around me and talking to her so I was trying to protect the deal I had worked on. I'm sure you've made mistakes at one point and reached out to others for help. That's what I'm doing here.  And this is something I was told was required to do...after the fact, I'm finding out it's not...No need to be jerks, just a way to guide me would be great. I'm willing to release it at no cost to her, I've heard other wholesalers say I should charge a fee to release it, or have the new buyer compensate me to release it, but I'm not looking to be that guy... I'm just looking for form to sign and get her on her way... Again, I did it because someone said it was just another step in the process..now I know.. but thanks anyway.

    You want to make money on the seller with no money in your own pocket. When you cannot make money, you are simply ignoring the seller and passing the buck to the seller. Then, you make yourself doing seller a service by releasing yourself from a failed deal. You are even cheap enough to not consult with an attorney. What a joke.


    If I cannot close the deal within timeframe, I will either call EVERY SINGLE "buy property for cash" biz in town by telling them what kind of property I have. I may even able to make some $$$ from this deal. Or, I will file a release within lighting speed.  

  • Member since 2019 · 113 posts · 25 votes
    7y
    Originally posted by @Ned Carey:

    @John Thedford  think you have been a little harsh on @Angie A. Yes she has done something unethical, however she was sold a dream and given bad information on what to do to reach it.  Yes she should have considered how the memorandum would get released when she recorded it. More importantly she should have dealt with it faster. However I still put much of the blame on the people teaching this stuff. 

    What idiot told her "And this is something I was told was required to do"?   Also Angie was told she could charge a fee for the release!   Who is teaching this stuff?

    Angie made a mistake and came to us for help how to rectify it. Her mistake was one of ignorance (negligence) not of malice. The smart people here, (John is certainly in that group) should first strive to educate, then if appropriate reprimand.

    Regarding how Angie should proceed, clearly her attorney should address this ASAP. However if it were me I would write up a release, this release would reference the original recorded document with liber and folio, have it notarized and record it in the land records. 

    Angie you should realize that what you have done is a very serious issue. This is certainly a Tort (something you can get sued for) and might possibly be criminal. It sounds like you are hanging around and or listening to the wrong people. 

    I hope, Angie, you learn from this. There are many lessons here. One which is not obvious is that another wholesaler cannot legally take your deal. It is called "interference with a contract" Another lesson is; you need to KNOW you deal is so good it will easily quickly resell or you need to be in a position to close on the deal yourself.

    Regarding how I would handle it if I were the VICTIM, I would move forward with any sale or marketing efforts. This cloud will get dealt with eventually and if it temporarily blocks a sale, that only increases the damages she could claim. At the same time I would talk to TREC and/or to an attorney to file suit against Angie.

    Ned, I think you give too much benefit to the OP. Think about the seller on this deal? 

  • Allen, TX · Member since 2016 · 15 posts · 26 votes
    7y

    @Daniel Kim hi Daniel. Sorry for the late reply. I don’t come on here anymore. I find some people weren’t helpful when I came on here to ask for help and instead got attacked left and right. A handful were helpFul. Anyway, yes I did. It was resolved within just a couple days of posting this. All I did was get a form notarized and I sent it back to the court hours. Everything worked out well for the seller. She was able to get the house sold and we all walked away with no hard feelings. I happened to listen to a “coach” who told me to do this and it’s very common, it wasn’t even a lien that I had put on this. My original post was worded wrong but I wasn’t able to wasnt able to edit it.  

  • Allen, TX · Member since 2016 · 15 posts · 26 votes
    7y

    @Maurice George get over yourself. This is old news and the seller is very happy with the outcome. (which you haven’t even bothered to inquire about) You don’t know me and I’m not coming back on here to reply to you. I’m sure you've made many mistakes in your day. Again, move on. I’m not interested in dealing with arrogance.  

    Be kind, help people. 

  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    7y

    @Maurice George There is no shame in ignorance unless it is a choice. The OP did not choose to be ignorant. She came here to learn how to correct an admitted mistake.

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