Re: PRIVATE LENDER. COST ME $100’s tell us more - Posted by AnnNC
Posted by AnnNC on December 03, 2000 at 01:28:52:
Thanks for posting this interesting situation.
I am trying to learn from it…
You say you put up $500-where? In escrow? and what were the documents /escrow agreements to protect you?
I’m thinking that NONE of this should have been in the hands of the private lender. He/she should not control
any of the mechanics, just be advised of them, not
be responsible for the sheduling of them. Yes, back out, if not to his investmennt standards, but not hold up the proceedings.
It seems to me that you lost control of your deal, and
that there is a possibility that the private lender did this on purpose and went around you–just wondering if this could be the case.
Was the $500 he thinks you owe him the same $500 that you put up?
The problem seems to be in your contract not having covered all the possibilities.
It also seems that “Joe” was resonsible for the delay and that he should be the one coming up with the
$75/day, not you. This is the part I don’t understand:
why is he “advancing” you the money to close, when he is responsible for it not closing? This makes no sense to me.
I hope someone will clear this up: is this customary for a private lender to schedule a bug inspection? or
rather, as I had thought, to expect the borrower to do all the work,
present all the documention as to bugs, roof, lead,
rents, etc. to the lender,
Honesly, one interpretation could be that he just delayed and let it fall through in order to take the deal away from you. I’m very interested in learning if this was in fact the case or just a matter of reeely bad contracts, In any event, why let the inspections
be in his hands? This part seems to leave you out of the loop, whereas, you are supposed to BE the loop!
You must be in control of every item that has to do with the closing,
This almost feels like a conventional loan where you
are in the dark until the last minuite. That’s not the
way it’s supposed to be, with your being the creative
Also, what did he mean by saying he could deliver the purchase price in one week? What was the "one week"
all about? Was that to keep you from shopping?
I’m real interested in this as you can see, I’d like to
learn more about the time frames that were proposed to
you and how/why they actually played out.
It never hurts to give us more details…I just can’t see from your post where you did anything to delay the
Did you do this with a title company?