Posted by blogger on March 29, 2008 at 11:21:03:
These are directions on top of the page here
Double Closing Escrow money - Posted by Don Sibelius
Posted by Don Sibelius on March 28, 2008 at 10:34:25:
Hello,
I had an REO property under contract for $150K and was wholesaling it to an investor for $175K with a $20K deposit into escrow. At closing, it was a simultaneous close. I bought the property from the bank and then sold it to my investor at the same time. My strategy was to use the buyer’s proceeds to pay the bank. Title company got the okay from the title insurance underwriter and my buyer signed a document to that affect that we were using his money to pay the bank.
We had the closing, all docs were signed but my buyer never wired the funds. Bank gave us a deadline and I gave my buyer the deadline to wire funds. I had my buyer sign a “Notice to Buyer to Perform” stating that if he couldn’t close by the extended deadline, I would cancel the contract and keep the $20K escrow.
He never wired the funds. I forfeited my $2500 deposit to the bank. Title company released the $20K to me and I told the buyer the contract was canceled.
Now, 3 months after the closing, this investor finds out the property was sold to another investor and is now threatening to sue me for the $20K, saying I never owned the property and was not entitled to keep his money. Did he think I would hold the property indefinitely until he came up with the money?
What legal recourse do I have for suing them for failure to perform on the contract and what recourse does he have for attempting to get his $20K back.
Thank you.
Don
Re: Double Closing Escrow money - Posted by Natalie-VA
Posted by Natalie-VA on April 01, 2008 at 06:03:45:
I wouldn’t worry about this unless you’re actually served with a lawsuit. Make sure you hold on to all of your documentation though.
–Natalie
I’m no attorney but - Posted by Carolfl
Posted by Carolfl on March 28, 2008 at 18:43:43:
as to the first qtn, it depends on how your contract was written… did it include specific performance? and would that be worth it? Besides, the property is no longer available for purchase so you can hardly sue for specific performance now that it is sold… perhaps for some loss if you sold it for less than the prior contract.
Look, any one can attempt to sue for almost anything, but it doesn’t mean they have a leg to stand on. It’s all about the contract, I do believe.
Have a good night’s sleep.
Carol