Posted by srtracy on August 14, 2004 at 22:02:07:
Your buyer needs some incentive to refinance.Why not offer to pay for some (or all) of the costs of her refinance.This will free up your credit.If you attack your buyer you probably won’t do any more deals with the members of your investment club (or anyone they know).Next time get your agreement in writing.
“Subject To” Breach of Contract - Posted by Jeff Morelock
Posted by Jeff Morelock on August 02, 2004 at 13:31:51:
About a year ago I needed quick cash, so like a fool I sold two rental house “subject to” another investor for $4000 cash per house and then the normal “subject to” closing. This investor promised to refinance the houses into her name, but has not, therefor tying up my credit.
This took place in Florida. Is there a way I can sue her for breach of contract? (Verbal as far as the refi agreement - should have gotten it in writing I know)
Re: “Subject To” Breach of Contract - Posted by Jason Gilbert - SoCal
Posted by Jason Gilbert - SoCal on August 13, 2004 at 01:42:37:
Find out her selling price and find a buyer(s) to buy the properties. That should be win/win/win.
By the way, verbal residential rental contracts ARE enforceable in Ca, so there are exceptions.
Re: “Subject To” Breach of Contract - Posted by Bill H
Posted by Bill H on August 03, 2004 at 16:25:09:
Not a very nice way but you can call the lender, better still WRITE the lender and tell them you NO LONGER own the properties and wish to be removed from title and their loans…that will get them started.
Good Luck,
Bill H
Re: “Subject To” Breach of Contract - Posted by Jeff Morelock
Posted by Jeff Morelock on August 03, 2004 at 17:59:06:
Yep - that’s my last resort. The lady who bought them is a nice lady and a member of the same investment group I belong to, but she just keeps giving me the run around. I know she has the money, credit, and several more properties that she could use to secure new mortgages if she had to.
Thanks for the reply.
Re: “Subject To” Breach of Contract - Posted by JohnBoy
Posted by JohnBoy on August 03, 2004 at 22:37:31:
I agree with Tom. I wouldn’t say anything to the lender about this. If the lender calls the loan then it is your problem, not so much your buyer’s problem.
Read your contract you have with your buyer. It probably says nothing about the buyer agreeing to refinance or pay off your loan if the lender finds out about it. Your contract probably only says the buyer will make the payments until the loan is paid. So if the lender calls the loan and refuses to accept any payments from your buyer or forecloses on the property, it’s YOUR credit that will be ruined, not your buyer’s. Your buyer has no obligation to refinance or pay off the lender if they call the loan, unless your contract with your buyer states differently. I’ll bet it says nothing about this.
At this point, as lomg as your buyer maintains making the payments then they are not in breach of their contract with you. You on the other hand are in breach of your mortgage you have with the lender. So I wouldn’t stir things up by saying anything to them about it.
On the other hand, if you do say anything to the lender for the purpose of trying to force your buyer into refinancing or paying off your loan, and your buyer finds out that you are the one behind stirring this up with the lender…your buyer might just file a suit against you for interferring with a contract. Then you will be the one defending a foreclosure suit with your lender and a countersuit with your buyer.
Anything said verbally is not enforceable. Anything pertaining to real estate must be in writing to be enforceable. So unless your contract states anything about your buyer having to pay off your loan by a certain date, I wouldn’t be saying squat to the lender about this. You are the one that has the risk to bare if the lender gets involved and pursues calling the loan and foreclosing.
Re: “Subject To” Breach of Contract - Posted by Tom-FL
Posted by Tom-FL on August 03, 2004 at 20:26:52:
Ummmmm, if your main concern is your credit as you said, then the last thing you probably want to do is tell the bank you violated the contract by selling without paying off the loan. The investor probably got her $8k four times over by now and could not care less about a foreclosure, especially since the loan is in YOUR name, not hers. There is not a chance in the world they will take the loan out of your name because you tell them to. You are on the hook till it’s paid off or foreclosed.
Re: “Subject To” Breach of Contract - Posted by Jeff Morelock
Posted by Jeff Morelock on August 03, 2004 at 22:34:46:
Thanks for your reply. I agree with the credit thing, I was just hoping there was a breach of contract issue. I think I will spend the $200 for an hours worth of real estate attorney time just in case I have a case - pun intended.
Re: “Subject To” Breach of Contract - Posted by JohnBoy
Posted by JohnBoy on August 03, 2004 at 22:43:00:
What breach of contract? Is your buyer making the payments? If so, no breach of contract. Does your contract with the buyer require them to refinance and pay off your loan by a certain date? If not, no breach of contract. You can’t use anything that was said verbally to claim a breach of contract. Verbal contract is not enforceable when real estate is involved. Everything has to be in writing to be enforceable. So unless your buyer breaches anything in your written contract, then you have no recourse for a breach of contract.
Re: “Subject To” Breach of Contract - Posted by Jeff Morelock
Posted by Jeff Morelock on August 04, 2004 at 11:09:36:
I suppose you’re right, I guess I made a mistake and was just reaching for strings.