I like your attorney’s advice. Pay nothing to anyone until all parties agree to the complete deal – in writing.
Sounds like the wife is looking for a piece of the action. You need to contact her and explain the lose-lose situation she’s facing and the black mark on her credit report for the next 7 years. Be sure to explain the husband is not getting a dime out of the deal – that’s what she’s really worried about. You may have to bribe her with a few hundred bucks to go along. Since this is a divorce, don’t expect your flawlessly logical explanation to be enough to sway her. You will need to massage her emotions and ego.
Dear investors,
There’s a very interesting senario here. I’ve got a contract with seller (husband) to take over back pays and reinstating the loan for Deed. by the way, this is in California. I gave him 16K for his house plus the back pays, (which I haven’t payed the bank yet because it’s in NOD at this point.) After I recorded the deed, I got a letter from the wife’s attorney with a certified letter for a “NOTICE OF PENDENCY OF ACTION”. Basically saying the title is no longer clean. Within a certain time frame the bank will foreclose the property at a Trust Sale and everyone looses. What are my options at this point? My attorney does not recommend me to pay for the backpay until I get the wife’s attorney to remove the cloud from title. btw, they are in a divorse situation.
I’d appreciate any ideas to get out of the deal with minimal loss.