All Forum Posts by: Tom Gimer

I think they could at some point.., but the property is gone, so it's down to the insurance.

I think they settle for a couple hundred grand and end this, as it doesn't appear the $2mm second homeowner will ever give up. TI should make a business decision.

You have a title problem. 

Quick claim deed in the chain.

@Caroline Gerardo I read up a bit more on the facts here. This was a 2nd home purchase in 2002... with a $1.5mm loan. It's a property Murphy was only using sparingly on summer weekends. He had properly updated his mailing address for correspondence to his primary residence but the foreclosure paperwork was served on some unknown third party at the 2nd home. While they were sending loan mod paperwork to his primary they were sending foreclosure-related paperwork to the 2nd home. They foreclosed and obtained possession after posting notices at the 2nd home while still sending notices to his primary regarding the WAMU/Chase issue and purporting to offer him a workout AFTER the sale. They've been fighting this since that time. Interesting.

@Beau Thompson Perhaps the best solution would be to find a buyer (perhaps another investor on BP) to assign your contract to for the $10k? 

Good point, Jay. Just mentioned that above about how easy it is to use a different title company to get around this.

But if the breach is clear and indefensible, this can even be done without changing the title company. Alert Buyer1 they are in breach and they are losing the deal and deposit on X date. All in accordance with our (newly required) EMD terms, now local law. Often the buyer miraculously comes up with the funds and closes, other times they just lost their deposit. No disputes and 100% success rate so far.. no impleaders necessary. By the time the legal fees and expenses for impleading are incurred (part of the EMD agreement) what's left of the deposit?

Sounds like foreign law may be at issue here so just generally weighing in... but I love how people think that once an EMD is in escrow a property can't be sold until the deposit is mutually released. That's just not true. Title companies and brokers don't want to get involved with these types of deals, but the fact is that it's not the EMD that matters, it's the contract. What does the contract say? Is the buyer clearly in breach? Is the contract now void or still somehow enforceable? Once breach is clear there is likely no problem with the property being sold out from under a defaulted purchaser unless they take some action to enforce or protect their interests before the next sale happens.

Any buyer with a winning hand would alert all of the parties of their legal position and in writing alert the seller they need to wait for an outcome of the dispute before the property is sold. If not, game over. And good luck reversing the next transaction... if it's with a bona fide purchaser for value (often thru a different title company, so no notice unless suit/lis pendens has been filed) you are SOL. 

Perhaps ask for a $500 (or other suitable figure) deposit to remove the shed. If she can remove the shed without damage, she gets it back. If not, you use whatever funds are necessary to repair your land and refund the rest. If that's agreeable you reduce it to writing in a simple agreement and include a mutual GENERAL release of claims; then it's over forever.

Most reasonable people would agree this is the right way to handle this. Obviously since this family just lost the property they likely cannot fight for the shed even though it sounds like it's theirs. Good on you for considering this.

Generally speaking, if it isn't permanently attached to the land (in other words, if it can be moved, which sounds like the case), then the shed isn't realty... it's personal property and was not included in the sale. The terms cited above are pretty clear about that.

If there was a reason to re-record a deed it would be recited on its face. Clerks are generally not confirming anything stated in a deed, they are simply handling the recording function. Things recited in a deed may need to be challenged and litigated later.