All Forum Posts by: Tom Gimer
Tom Gimer has started 14 posts and replied 3445 times.
Post: Not COVERED - TITLE Insurance issue- THOUGHTS appreciated to remedy

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Quote from @Peter Walther:
Your friend really needs to get some advice from a good real estate attorney who practices in the area where the property is.
That written, first, as has been pointed out several times, it sounds like your friend has received the benefit of his title policy, so I doubt there's any recourse there. For the next time, in my experience, a title policy can be issued for the expected value of the property after the improvements are completed. An Owner's Policy will probably have a clause that limits the amount of insurance to the value of the property as of the date the claim is made. In your friend's situation, the loss would not be the amount he has spent improving the property, but the value of the property as improved by the partial construction. For a lender's policy, it would be the amount of money disbursed under the mortgage/deed of trust. Now that's the amount of insurance and not necessarily the amount of the loss which could be a different calculation.
Second, if memory serves me, a claim for unjust enrichment requires the cause of action be based on a contract between the parties where the plaintiff (your friend) performed a service for the defendant (the property owner) for which the plaintiff had an expectation to be paid. In my opinion your friend might have a cause of action for equitable improvement, but the possibility for success depends entirely on the specific facts. Again, you friend needs to get to an attorney.
Lastly, your friend is not looking to have title restored to him as he never likely never had title since generally title cannot not pass under a forged deed unless the deed transfer has been recorded in a Torrens title state, he's going to ask to be paid back for the value of the improvement. For example, if the improvements don't meet code, he shouldn't expect to be repaid the $200k he paid to make the improvements. He should expect to be ordered to remove the improvements at his expense.
Unjust enrichment is used when there is NOT a contract... but under circumstances where it would be inequitable for the defendant to keep the benefits received from the plaintiff without compensation/restitution.
If there WAS a contract the plaintiff would just sue for breach. The existence of a contract is actually a defense to an unjust enrichment claim.
The plaintiff here was defrauded (albeit by a third party) into providing a large benefit to the property owner. Not as a gift and not voluntarily... so it's worth further research. And if it all fails, I love @Ed O. 's idea.
Post: Not COVERED - TITLE Insurance issue- THOUGHTS appreciated to remedy

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Quote from @Ken M.:
Quote from @Michael Morrongiello:
Ken
Few Attorneys will be willing to take on a Title Company and their army of litigators.
The insurance willingly PAID on that claim.
Trying to think outside the box here
Fidelity flew in people from all up and down the coast for trial.
I won.
There is no way to win this, unless there is a lawsuit.
Litigating with a title insurer that has disclaimed coverage? Sure...
But litigating with a title insurer that has already paid policy limits? What is the point, there is nothing to win.
Post: Not COVERED - TITLE Insurance issue- THOUGHTS appreciated to remedy

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The title insurer has honored its commitment in full. They're out.
Research unjust enrichment... a legal doctrine based in equity. The defendant would be the owner who has been unjustly enriched. You would find the defenses to such a claim developed through state caselaw.
Post: In search of solid title processor

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The Investor Team at Eastern Title is looking for a rock solid title processor. As an investor if you've worked with a great processor who you know is not happy at their current company, help them make a move by sending them my contact information!
A move to Eastern Title could be just the career move they need.
Depending on the candidate, the position could be in office (we have several), hybrid or fully remote. Great pay! Candidate would be expected to close 40 deals per month max. Communication skills and the ability to multi-task are a premium.
Refer anyone you know to me please... and I promise if it works out I will take care of you.
Post: Buying a Property but we cant find someone on title!

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I believe you are dealing with a missing interest and nothing will save the deal until every last % has been accounted for.
When buying property the expectation is to get 100%… whether to move on or not will depend upon how easy it will be to locate that interest-holder and secure their signing.
Post: Bank foreclosures legal perspective

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In a pre-foreclosure scenario, the bank does not own the property and therefore cannot use the courts to obtain possession.
Also the goal in a foreclosure is not to bring in the most money... the bank's recovery is limited to the amount owed.
Post: I need help can someone please send me a copy of a contract please

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@Amanuel Kassa Feel free to connect with me and send me your contact information. I'd be happy to share the contracts I use in this area.
It's a shame BP doesn't allow file uploads anymore. What's up with that?
Post: How to pull equity out of a subject to property?

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Quote from @Mark Klinkov:
Its a photo of my 11 year old son! And I swear on my mothers life every reply from this community has been: "We love your photo".
2nd my property and you can DM me has appreciated over 3.5% per month, and thats without me getting it reappraised after having completed a very expensive renovation.
This community feels toxic when an admin tells me he does not approve of me posting a photo of my son. I am a single father, we were evacuated from a war zone by the state department. I lost my wife, my houses, my businesses and my dogs. I came to America less than 2 years ago with no money. So, yes its my first deal in America, yes the photo is of my only surviving son.
The picture of your 11 year old with cash bills spread out like a drug dealer sucks… with or without a back story.
Post: Title company won’t disburse (Land Trust)

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The reasons for this are quite simple.
Who knows whether or not the documents you have provided are legit or even the most recent? Here's how this plays out... title company disburses to you directly, the true beneficiaries appear months later and their funds are gone. Guess who they sue?
Cutting the check to the trust/owner of record eliminates the potential liability for the title company.
Post: How to pull equity out of a subject to property?

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Quote from @Mark Klinkov:
Quote from @Tom Gimer:
Obvious answer: sell it
Reason: subto is not a viable long term hold solution
Based on WHAT? I just closed on, renovated, and rented out a SUBTO deal that cashflows $500/month. I walked into instant equity well over $50K. My CoC is in the double digits, and my property is appreciating over 3% per month. In my opinion, SUBTO, and Seller Finance deals are the ONLY VIABLE long term hold solutions that are scalable.
Based on the reasons I've provided in this thread and elsewhere on this site. Aside from the obvious "due on sale" issues which are in play for the life of the loan, you also have wildcard sellers who can decide at any time to blow up your deal. And the odds are when they discover they don't qualify for a new loan or start whining about the equity they believe was "stolen" from them (rightly or wrongly), they will. My opinions are based upon closing actual subto deals and watching the events unfold, not on speculation.