Wholesale Deal with Domestic Issues

22 Replies

I have a house under contract, and coming up on closing, hopefully. Straight to it, The Seller told me she owned the house free & clear. Come to find out, from my Title Company, she got divorced because of Domestic Violence, etc. The guy is in Prison, scheduled to get out in a few months. Not a very nice guy, possible gang/cartel member. Domestic Violence, drugs, alcohol abuse, etc. He is in for DWI. Anyways, He is still on the deed. My title company says I need to contact him, get him to AGREE to sign a Warranty Deed, once he agrees, they will send it. The entire family is scared of this man. They dont want to contact him. They say, EVEN IF you contact him, good luck getting him to sign ANYTHING. He is very spiteful, etc. I'm wondering what my options are as far as maybe a Quitclaim deed, or some kind of court order, but then again, I haven't even spoken to this man. I have no idea how he really is, and if he would still say no, even there was maybe like $100 in it for him. In prison 100 should go a long way... But if I contact him, ask him to sign the Warranty Deed, and he says No, does that open up another legal route, or am I widdling away my chances with every contact to him? Could he say No the first time and refuse to speak to me any time after that? What the family is worried about is if I ask him, he'll know His ex wife is selling the house, tell somebody on the outside and then something bad will happen. I dont wanna fan any flames here... I also would like to get my first deal done and over with. I had a feeling there was going to be some kind of speedbump, so when I presented the PSA, I went ahead and made my inspection period 60 days. But I already have a cash buyer, I've already accepted his offer, I'm looking to make 13k off of this deal. He is already having people come by and look at the house, he is ready to close, I am ready to close. Everyone is ready, the seller has already moved out. but my title company said they wont do anything until the Warranty deed gets signed. Is there ANYTHING I as the Wholesaler can do? I am not afraid to get creative, shoot, I had a kind of Sinister Idea to send him a "Probate-Like" Packet in the mail ( if he really is as bad as they say he is, and he REALLY is a messed up guy, wouldn't it possibly better if maybe he thinks shes deceased? OR tell him the property is already sold, and maybe just structure the whole thing as if he has no choice really, it's all just "After-the-fact" Stuff...? Any Advice Helps

Updated almost 3 years ago

Went to visit the seller, and lay out some plans for how we can close this deal. Knocked on the door, and the new tenants answered the door! Turns out, her son helped her move out, and they went ahead and rented it out to someone else... I went ahead and had her sign Termination of Contract, kind of relieved..

sometimes deals don't close.. also run title before you resell.. 

if it was me given potential life threatening deal I would just pass .. maybe it goes to foreclosure and U buy it at the sherrifs sale since U already know about it.. 

I recently lost touch with a home owner who had a fixer to sell but ended up in jail before he could sell it. So I visited him in jail and kept in touch with him for 2 months. He eventually agreed to sell the house to me for a dirt cheap price. I know I got the deal because I did what most investors won't do. 

So I say, just go visit and try to explain the situation to him. If he's willing, you can arrange for him to sign the docs through social services. If he says no, drop the deal and move on. 

What does the divorce decree say about the house? If the court gave the house to the wife, you May can get something done thru the courts without him....a small chance.

Otherwise, Someone is going to have get him to sign.....$100 is nothing, and don’t try the fake probate thing, that’s just stupid.

Originally posted by @Pratik P. :

I recently lost touch with a home owner who had a fixer to sell but ended up in jail before he could sell it. So I visited him in jail and kept in touch with him for 2 months. He eventually agreed to sell the house to me for a dirt cheap price. I know I got the deal because I did what most investors won't do. 

So I say, just go visit and try to explain the situation to him. If he's willing, you can arrange for him to sign the docs through social services. If he says no, drop the deal and move on. 

to follow up on Pratiks thought.. just send a courier in with your offer in writing and keep it arms length.. the courier can just say man I am here to walk you through these papers and sell the house.. if he balks he balks.. but your not putting your self in the middle have the buyer be an LLC etc.

cool, thanks @Jay Hinrichs , Yeah, I think I'm gonna try. I mean, as long as what needs to be protected stays protected, and nobody is the Wiser, why not at least try? Whats he gonna do? Say No?

The only thing is, my Title Company wants me to contact him first, get him to say yes, THEN they will send the papers... Wonder what they would do if I just sent my own Warranty Deed up there, but on the other hand, THEIR paperwork might have certain protections in it, but then again, maybe protections for THEM, not necessarily all parties involved. not really sure 

Originally posted by @Joshua Dees :

cool, thanks @Jay Hinrichs, Yeah, I think I'm gonna try. I mean, as long as what needs to be protected stays protected, and nobody is the Wiser, why not at least try? Whats he gonna do? Say No?

The only thing is, my Title Company wants me to contact him first, get him to say yes, THEN they will send the papers... Wonder what they would do if I just sent my own Warranty Deed up there, but on the other hand, THEIR paperwork might have certain protections in it, but then again, maybe protections for THEM, not necessarily all parties involved. not really sure 

 you need to tell your title company to just prep the docs if he does not sign you pay a cancellation fee.. or a doc prep fee that's what they are worried about.. my title companies that I work with would do this without question.. but of course we are high volume client. 

but that's what they are worried about prepping docs and not getting a closed transaction.. so just offer to pay them up front whether it closes or not.. I suspect they will do it then.. and if they wont hire an attorney to do it. its not that complicated.. for that matter just send me a copy of the last recorded deed I can do it.. LOL and so can you.. 

@Joshua Dees Are you really that hard up for a wholesale deal you’d go to a prison and jump through legal hoops to get a gang member to sign off his only worldly possession he has left and possibly put yourself in danger because of the gang connection ? How much couod deal be worth , a few grand ? This seems a little ridiculous even for a wholesaler .i do admire your ambition and drive to see the deal go through though .

@Joshua Dees No property location provided but around here a divorce would sever a H&W TbyE tenancy creating TIC interests. That would mean absent an agreement or order stating otherwise, you are dealing with a 50% owner. $100 to a 50% owner getting out in a few months is laughable.

FYI "free and clear" means no mortgage, not no other owners.

@Dennis M.  

Hard up? No. 

Do I want to do this deal for Proof of Concept? Yup.

Am I going to take this as a lesson and use it for next time no matter what the outcome? Yes.

Do I have any money in this deal and anything to lose besides free time? Nope.

 I really doubt he is an active gang member, I've been talking with the family, he and his wife are both Senior Citizens, and as far as his possessions go, he left the place (and the family) in pretty bad shape... I'm pretty sure I'm doing somebody a favor here, considering nobody really has any plans or funds to fix the place up. The Seller is not working, she is retired. Am I supposed to believe that the Ex-Husband is going to come home and start rehabbing the property? The family doesnt even think He'll be coming back to Dallas. Some have even said he may get deported. He is in jail for DWI, Drugs and Domestic and got denied parole because of his record, I'm not worried about dying over this deal if that's what you're getting at, I personally grew up around and have met some pretty shady characters, these people just dont fit the bill. A part of me thinks they may be lying, Not to say I'm not cautious, but I just don't get that vibe, like at all. Maybe a grandson or two that is on drugs, but I don't think I'm dealing with any full-blown gangbangers here. I know I posted that, but I was getting fresh info, and I cant go back and edit. I am going to make 23k on this deal, so yes a few grand. And thank you for noticing my ambition.


@Tom Gimer , thanks for the info.

He's not getting out soon. his parole got denied, sentenced full term. Sorry for posting "free and clear" without knowing the full definition. Now I know, Thanks!

@Joshua Dees You’ll make 23k assuming the guy in prison signs it which realistically is going to be a long and drawn out process. A couple months is probably best case scenario to that happening. Someone else already said this but next time just run title beforehand. How long were you into this process before you found this out ?

@Joshua Dees No worries... just trying to help you figure this one out. Sounds like you'll either need his ink (plan for extra $ for a notary to visit the jail) or a court order recorded among the land records (or however it works where you are located for enforcing an agreement pursuant to a divorce/settlement), i.e. court involvement. 

@Joshua Dees what @Caleb Heimsoth is saying is that before agreeing to sell the contract to a cash buyer you may have wanted to know about the title issue. You have no money in the deal and so if it doesn't go through you won't lose any money. Unfortunately, if you can't make it happen, then you have an issue where you might lose credibility with the cash buyer who is already taking action as if this is a done deal. 

Also if you had gotten the title search before you got the house under contract, you might have been able to use the issue with the title to negotiate an even better deal since the family obviously doesn't want to deal with "Bad Grandpa".They would have to if they wanted to sell to anyone else and would have given you more leverage in negotiations. Doing the title search beforehand would have at least given you a chance to either walk and not damage your reputation or get it figured out before bringing in the cash buyer. Either way a good lesson to anyone that reads this post. 

I hope it works out and I would try offering more than $100.00. If you are going to make 23k then you can do better. 

I looked up the property tax records and everything on the County websites, it ALL says she is 100% owner.. I don't know what the Title Company is seeing that has his name on it, I spoke to the family today, they said The Ex Husband wasnt even AROUND when the house was bought...