My partner has been negotiating a SS with Countrywide and has been working on it for about 3 months. The homeowner was very motivated in just trying to get out of the property and was willing to do whatever we needed in order for the deal to go down. This was back in September when we first met with him and from then on he’s been so easy to work with. The BIGGEST mistake we made was not getting a disclosure statement and the deed signed over to us.
SOOOO, two days ago on the 11th of Dec. the lender informs us that the property is now deed in lieu!!! We asked when, they said as of Oct.9th!!! My question is why wouldn’t the lender inform us while this was going on? We are looking to ask the homeowner, but he is away for the holidays. And does this change anything with the SS? And how? This is one mistake that we are DEFINITELY not going to overlook ever again. I guess just starting and getting out of the classes we got into a deal very excited and really messed up.
This is YoungNsoTheySay’s partner, we not only don’t have the disclosure statement and purchase contract not signed, but there is a second lender involved as well. Since the 1st is in deed in lieu, does that effect the negotiations with second lender? Also, now that the property is in deed in lieu, do we still have to get the disclosure statement and purchase contract signed?
Wow - that sucks.
What would your disclosure have done - does it say that the homeowner can’t make a different decision? Is it logical to expect that you would be able to get the deed at this point? You weren’t making the payments, and they were still on the hook for the foreclosure - so I’m not sure what you mean by getting the deed - why would they deed the property if you can’t make any promises to them about being able to get your SS accepted?
I am very interested in hearing what others have to say about this - b/c I can see this type of situation happening to me in the future. I think maybe it would have been preventable if you had a signed sales contract - but I’m not sure about this either.
Perhaps there isn’t anything that you did wrong.
I just added a clause to my disclosure stating that if the Seller decides to pursue a different sales option that they must inform me in writing w.in 7 days of the decision.