Posted by Calhoon Milleron on February 16, 2004 at 10:40:30:
Gary,
You are dealing with crazy people and should know better. You have worthless contract and you are greedy.
Sounds to me like you are getting just what you deserve. Deal more fairly next time, and you may not get sc–wed over like this.
Cal
Please Respond - Urgent! (Long) - Posted by Gary - IN
Posted by Gary - IN on February 13, 2004 at 17:48:33:
I recently got a property under contract. I originally dealt with the homeowner, who seemed to be a little mentally unstable. We agreed on a price, and at the last minute she decided not to do the deal as she thought I would be bringing the whole purchase price to her house the day we signed the contract. It was dead in the water, and honestly I was glad. It was a great deal, but I wasn’t comfortable dealing with her. I kept feeling like I was going to find a dead body when I opened a closet.
Anyway, a month later she is committed and gives complete and total power of attorney to her brother. I have a friend who dates the lady next door to this house, and he gave me the brother’s number. I called, offered him $32K, and he told me no way. The original offer to his sister was $40K, and I found out later he knew this. Anyway, I told him to let me know what his best price was. He called me back, and we settled on $42K. He told me then that the owner’s daughter was also interested and had verbalized an offer to buy. I told him that whatever they decided was fine and to get back with me when they had made a decision. He called me about a week later and told me they had decided to accept my offer. I overnighted him the contract with a small earnest money deposit, and he returned it signed three days ago. I also have a copy of the power of attorney that gives him power over everything except when she goes to the bathroom. It is notarized, but the contract is not. As he is in Iowa, and I am in Indiana, it was kind of difficult. I had no indications that there would be a problem, and he wanted to close quickly. I submitted the paperwork to the title company two days ago, and today I get a call from his friend who lives in my town, and he tells me the homeowner is throwing a fit and that she wants to sell to her daughter. This is the same daughter who had the original offer in when they accepted mine. I told them that for 10K I would walk away.
My question is this: what can I do right now to protect myself? I called my RE attorney in town, and he said that they are out of luck, but I want to protect myself as much as possible. I can’t record the contract by my understanding as it isn’t notarized. I need to know ASAP what I need to do.
My RE attorney is competent, but he isn’t the most experienced in things that aren’t extremely common. I have had a hard time finding a good RE attorney in my small town. He told me not to worry, but I just want to cover my bases. This deal will net me around $28K after rehab. I don’t want to let it slip away.
Thanks in advance for all your help.
Good INvesting.
Gary