Friday, October 19, 2007

Mama Said There'd Be Days Like This


Since posting this last month (update at the bottom of the post), many people have been inquiring about the current status of our house in Albuquerque.

Well, today we found out it's not good. We kind of had that feeling. I mean, we're supposed to be closing tomorrow and we still haven't received any paperwork in the mail or any word from the buyer's agent. So that was a pretty good sign that things weren't going to go according to plan. ...Again.

We just got off the phone with our realtor and found out that the buyer, who is supposedly a reputable investor in ABQ, is trying to weasel his way out of his contract. After giving him another month's extension, we thought we were on schedule to go ahead and close this month. That's what they've been telling us all month, anyway. But apparently this guy is the type of investor (insert "shady") who doesn't like to close until he has an assignee for the property. And since it seems his assignee backed out yesterday, he is now wanting to back out of his contract with us. In a "share the love" kind of way.

Here's the problem:

1.) Our house has been off the market since July, when the investor put it under contract.

2.) The current market in ABQ is way worse than it was when we had our house listed. Our realtor said houses are listing for around $50K below market value. If we have to put our house back on the market today, it most likely won't even be viewed until next spring or summer. There just isn't any real estate movement going on in the area right now. Plus we'll have to contend with two mortgages and trying to maintain upkeep on a house and yard that we're 1000 miles away from.

3.) Our only other option is to hire a real estate attorney and sue the investment company for breach of contract. Which is a long, expensive process that often results in the sellers only being awarded the earnest money (which won't even pay for the attorney costs).

So, you see. It's not a happy day around here. The moral to this story? (Because I know we all like to learn from the mistakes of others.) Never sell to an investor. Investors do not want to buy a happy, cozy, Cleaver-like home to live in. Investors, by definition, want to make money. And apparently when it looks like they're not going to walk away with a big sweaty wad of cash, they get all weird and twitchy and start laying out their I-Gotta-Bolt! Plan. Even if they've strung you along for three months, assuring you that they will close and that the hold up just lies in the fact that they're "in the process of securing a loan".

We're supposed to hear from the realtor representing the buyer by this afternoon as to their "official stance" . ...But it's not looking good. We're a tad stressed out (massive ridiculous understatement) and we would appreciate it if you guys would be in prayer about the situation for us. I need to remember God is in control of all things. Big or small, He is in control. Worrying about it doesn't do any good. It doesn't change the situation and it only makes me feel like poop.(How's that, Walt? Do I at least get credit for acknowledging that worrying doesn't change anything?) I know I just need to pray and walk by faith.

...And slam some Mylanta. Because that's what my stomach does in moments such as these - it eats itself.

5 comments:

sarah p said...

ugh. I'm so sorry. we'll be praying. let us know what happens.

Robert said...

Ditto what Sarah p said. Not so good news there. We'll keep you in our thoughts.

Kristen said...

So sorry to read this...I will be thinking of you guys....keep your head up, it will all work out.

Kristy said...

Well, we just heard from the investment company. Apparently the group that has the house under contract is working WITH an investment company in Albuquerque.

The guy that has the company under contract is based out of California. He basically justs wants to get out of the contract and walk away. Like the big, fat Jerk he apparently is. But the company in Albuquerque doesn't want their name associated with shady investors and breaches of contract, so they are trying to coax the other guys into not backing out.

It's all a royal mess, but in exchange for another thirty days to close, they are coughing up another $2000 earnest money. That's the proposal they're planning to fax us this evening.

The really crappy part is even if things work out, and they end up closing, the earnest money is theirs - to be used as a deposit towards their down payment. Which means, even in the best case scenario, we're still paying two mortgages until at least December.

But at least this way if they bail, they'll be another $2000 in the hole. And it's going to be hard to win that back in a lawsuit, when we've done EVERYTHING to fulfill our end of the contract. But who knows... The laws are heavily stilted in favor of the buyer in New Mexico, so we may just be screwed.

Anyway...

Ugh. Ugh. Ugggggggggh!

Kristie said...

Kristy I will be praying that things will work out, I cant imagine the stress this is putting on you guys. Hang in there!

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