Is this a GREAT deal or HUGE headache??

Question

In a tough situation and hope someone has some insight on this..Met with a highly motivated seller in a completely trashed house, regardless, it has great potential for a rehab and will make a BIG profit once we agree to a price. 
HERES the issue. The guys mother-in-law Quit Claim Deeded the property to him because she was in some type of financial trouble and didnt want to lose the house (free and clear). He is trying to sell it, without her knowledge, but remember HE legally owes the house, she is STILL living in the home... Now with her in the house not paying anything but also NOT being the legal owner what can I do? I KNOW that she wont take cash for keys, She sat there and told me she put 300K in the house while blazing up a cigarette in the filthiest kitchen Ive ever seen with broken tile and paint chipping everywhere, Actually quite an ironic moment. Anyone have an idea of how we can get through this with out a HUGE hassle? Or is this just a deal I should move on from? Not looking for a lesson in morals here, The woman has had several instances with the law involving drugs and other things so not exactly an upstanding citizen. Just getting that out of the way.  Thanks in advance for any insight here!

Annette H. · Answer

This is not your problem. Don't make this your problem.  It's the seller's problem.  You can make the closing on the sale contingent on the vacancy.  Insist on a final walk through before closing and have the locks changed the same day!  Let him deal with his own mother-in-law or you don't close.  I think that will be plenty motivation for him.  In the meantime, I agree with Wayne, find a real estate attorney and have them perform a title search.  It's worth the money, especially in this case!

Ned Carey · Answer

I too am interested in the result. No one mentioned, did she have  the right to transfer the house?  If she was facing bankruptcy it could be a case of fraudulent conveyance.

Dawn Anastasi · Answer

Will B. what was the outcome on this?

Jon Holdman · Answer

I'd start by signing a purchase and sale agreement with this guy and taking it to a title company.  They wills start the process, including doing the title search.  That will give you solid information about ownership and any other encumbrances.

She is a tenant.  Maybe you want to make your offer contingent on him getting her out.  But that may be exactly what he's trying to avoid.  So you may kill the deal if you insist on that.  Having to deal with getting her out may be part of the price you pay for a good deal.

OTOH, she may not go quietly.  I think I'd spend a few hundred to have a discussion with a lawyer, once you have the title search in hand, to discuss what may happen if she tries to fight you.

Fran Flanagan · Answer

I'm with Annette,

The guy is trying to make money off of something that he hasn't paid for or maintained.  If he wants to do so, let him have the hassle of kicking her out.  No reason for you to cut him a check then deal with his mess IMO.

Will B. · Answer

Im more so concerned about squatter laws. She never had a "lease" or anything like that. Pays nothing. What right does she have to stay on the property once we legally own it? BTW I am in FL concerning the laws if anyone knows.

Wayne Brooks · Answer

Morals and family issues aside, make sure there are no other liens/judgements kicking around prior to the QCD.

Will B. · Answer

I originally set out to wholesale the property but after seeing the profit potential I got a partner on board who is willing to fund the entire deal through purchase and rehab.

The biggest issue I have is her still being in the property. I dont have an RE attorney readily available. Is this something that you could call around an get a consultation?

I just dont want to close on the deal an be stuck in a legal battle between us and the former owner. If its a quick solution to get her out of the property I would be willing to take it on with myself and my partner.

Braden C. · Answer

Do you personally have the ability to close on it or is your only option to wholesale it?

Your buyers are going to want a discount for having to deal with her, and rightfully so. I think you will make a lot more profit if you can close on it yourself, get her out, and then sell it.

As for the legality and ownership rights, I can't say without seeing the QC deed. It should be an easy question for a RE attorney.

One last thing, if it was easy then everyone would do it. It sounds like it could be a great deal for you but it also sounds like you will earn every bit of that paycheck. Don't let a small hurdle turn into a big mountain.

Is this a GREAT deal or HUGE headache??

Is this a GREAT deal or HUGE headache??

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