All Forum Posts by: Jerel Ehlert

Real Estate litigator? 

<looks in mirror>

I might.

"Owner finance" with 3 installments?  If those are cash or other forms of payment outside a banking system, beware of money laundering issues.  AML and UBO requirements exist for buyers and sellers, not just banks and title companies.

IN TEXAS:  The transaction should have been papered by a lawyer.  Promissory note, deed of trust.  Warranty deed.  When paid off, the seller gives the buyer a fully executed release of lien for the buyer to record.  This, too, should be drafted by a lawyer.  If this was not done right, the buyer will have problems selling months or years down the road.

IN TEXAS, we don't record notarized copies of paid off promissory notes.  Mind the source when dealing with DIFFERENT STATE LAWS.  What is custom where Jennie might be isn't what happens in Texas.

Good luck!

I hope you closed at a title company.  This might not fall under your policy but worth a shot.

Occupant threw the question of title into question.  All evictions will fail.  There's only 1 court that can hear an eviction suit: the justice court in the precinct where the property is located.  And that court does not have jurisdiction to hear questions on title/ownership.

The "one page unfulfilled purchase agreement" sounds like a crappy owner finance / contract for deed (CFD) - in other words, an executory contract. District court or county court at law has venue.

If your seller failed to disclose this, that's a breach of the earnest money contract and you MIGHT be able to recover from them.

These cases are a lot more complex than can be covered here.  You don't need an eviction lawyer, you need a real estate litigator.  See if title underwriter will look at the case and if it is an insured loss.  Worst case, they say no and you have to hire one yourself.

See if family can get a person appointed to work with his needs. Guardianship is a Major Pain but there are lesser alternatives. For the estate, there could be a designated payee with a POA for financial transactions. This helps make sure bills (you) get paid regularly. If he is a danger to himself or others, talk to family about getting a social worker to do an assessment. Might be as simple as a nurse visit periodically to help with personal care.

Lots of options.  

Only call the cops if there is immediate harm to others.  Call an ambulance if he's likely to hurt himself.

Talk to a lawyer from Texas.

Please keep in mind that state laws differ between states, sometimes wildly.  That's why lawyers have to be licensed by the state in which they want to practice.

It is presumed, without knowing, that the LLC was also (originally) under TX law. I'm going to continue that. If the LLC was administratively closed by the Tx Comptroller's office for non-payment/non-filing then there is a de facto argument that the contract was signed by the members/managers (if proper) that the successors in interest intended to sell the property, so it is right and just to enforce the contract against the successors. Even if the seller is no longer a de jure LLC.

As for what to do?  Have a candid discussion with the "sellers" to find out the story on what the holdup is and if they intend / are able to cure and close.  Explain that holding the financing costs and what they're willing to do.  

Unless you are talking about acres of maintenance, probably not.  If mower is in good repair, gratuitous use probably wouldn't be an issue (UNDER TEXAS LAW).  Not sure about WI or wherever this house is at.  If you charged for the mower or a known, hidden defect that was dangerous, might be a problem.

Get two lawyers talking about entity formation and you will get 7 different opinions. :)

Classic lawyer answer: it depends.

Non-humorous answer: it really does depend.

Real-life answer: no, it really does depend.

On what?  Well, just one for just you/spouse and no other assets...maybe not.  You and anyone else, likely.  Other valuable (non-homestead) assets, much more likely.

Insurance covers a multitude of sins.  Good business practices do too.

Talk to a lawyer.

Great question!  This is a 6-day event over 3 different weekends.  New content on each day.

Texas redemption is under Sec. 34.21: https://statutes.capitol.texas...  subsection (l) says transferring right of redemption is void.

Paying the former owner to redeem the property can be tricky, but doable. Looks like a double close.  I doubt title companies will touch it.  The purchaser can be the difficult point.  Be ready to sue to enforce the right of redemption if they don't play along.

@Account Closed "If the guy I sold to Stops making payments it trashes the original guy's credit. I have to do a foreclosure to recover the property. None of that hurts me much, but the guy I bought from gets his credit ruined with nothing he can do about it. I don't like putting people in that kind of scenario."

This is absolutely, legally, wrong.  YOU must still make payments on the underlying mortgage whether or not your buyer makes payments to you.  "But I didn't assume the loan!" Irrelevant.  Assumption means getting the lender's permission.  You bought the property subject to the underlying financing.  You owe the former owner the obligation to make those payments. 

You can be dragged into court in Texas and found civilly liable to the former owner for the payments and any damage those missed payments does to their credit report (and also attorney's fees to drag you into court).  Any lawyer in Texas will take that case on contingency because you have non-exempt assets.  That's an easy case for the former owner to win, too.

Criminally, I am aware of 5 cases across the US where investors have gone to jail when they intentionally fail to make payments on underlying mortgages when they buy sub-2.

If you buy on sub-2, sell on wrap or L/O, then walk away, your liability does not go way.