Bad Seller ss

Currently working ss for seller who owes 290k on house, I was able to ss to 145k w/lender.
I did not get a sales contract but she signed a performance agreement w/ me as well as
an affidavit concerning real estate form. She now is backing out of the deal & wants to sell
to a relative/friend and then get a cut of the proceeds once work is completed. This really sucks
due to the fact that I have done my job, but being thrown under the bus big time. What can I do?

You should have had the homeowner, at the start of the ss,
sign and noterized the deed to the house over to you. Just so
you could have control of the home. So this unfortunate
situation would not happened. Good luck

Easier said than done. (Getting HO to sign a DEED over to you) Auth forms, Purchase Agreements/Contracts, are one thing, a DEED is another. Sure, it’s possible, but they have to trust you, etc.

IMO, if you would have had a purchase agreement, this wouldn’t have happened. (i.e. couldn’t have legally)

Getting someone to deed you a home is not as hard as you may think. Anyways I’m in the middle of 4 short sales and they have all signed an OTP as part of the short sales package. Step one is to get the property locked up! Live and learn.


What do you mean an OTP?

I’m working on my first right now (alone). Ive seen people get deeds, sure, it just seems harder. Maybe it’s just mine own prejudice clouding my thought process.

OTP------offer to purchase. I have my first 2 possible sub-2 deals and its amazing what you will get when you ask for it and get over the fact that you are actually asking someone to give you their property. I was with you on being skeptical.

Not anymore. This seems to be a great way to invest. No banks, no fees, a few docs, and you have a property. There more to it than less but its a great way to go about acquiring properties without much hassle and getting some great equity.

In short…you will never know how hard something is until you ask for it or go through it.


Good points Nate, and thanks! Yeah, terms vary all over I see, here, we typically call it a PA, purchase agreement. :slight_smile:

The deal I’m working on isn’t all that attractive a property for my area. (*2 bedroom, 1 bath, NO basement. the no basement thing is a big deal around here) If it had a basement, I could easily flip it to another investor, doing what you stated. I think that I am jsut using this as a learning experience, and if I get a good short sale from teh bank, then I’ll rehab it and rent it out, most likely. I’d like to sell it, but the possibility of that isn’t so great.

ANyway, back on topic, even in a situation as I describe above, a deed would probably be a good idea then too, no? Worst case, I don’t successfully negotiate a short sale, and the bank just takes it. The people are/were going to just let that happen ANYWAY.

A sub-2 deal is like any other deal. It has to make sense. If the arrearages and lawyer fees, liens, judgements, etc. add up then its probably not a deal. If these total a small amount and you get the loans vs. what the home is worth and it makes sense then you have a possible deal. You can then owner finance, lease/option, rent, flip, wholesale, etc. Food for thought.


Contacted the bank and explained what the seller was trying to pull. They said that they would not
renegociate the SS with anyone else until the expiration of my agreement with seller expires :stuck_out_tongue:
At least it’s some consolation knowing that seller will have to wait at least a month to start another
SS. Iam still pissed though, I did my job and Iam ready to buy this thing, what else can I do??
I can get the house for price-145k-repairs-50k-ARV 320+.

Here is how I approach the acquistion of the deed in a short sale when the owner balks…

"Look around you, all of this is an illusion. In a month, two months, it will all be gone. I can’t save your home, I am not here to save your home. I am here to attempt to save your credit. For me to do this I need to have the deed, and you need to find another place to live. I know it’s harsh, but it is what needs to happen. Your home is worthless, and the deed is worthless.

Sign here."

If they still balk I shrug, shake their hand, wish them luck, and walk.

Always get the deed. You are building equity with the power of your voice alone. If you don’t get the deed you are wasting your time. You can always sign a contract, but can you always sue to enforce it? The house will be gone before you ever see the inside of courthouse and you can’t get blood from a turnip.

Good advice, good pitch. I will try again and see if the seller is willing to
sign deed over. She has family in the mortgage industry that are always in her
ear which is why she balked on signing blank contract. At this point I am open to
any suggestions on how to resolve this before our Agreement expires in 07.