A FSBO Nightmare: final scene
A true tale of 5 sold FSBO’s, For Sale By Owner.
The final resolution of this nightmare took over two years. I summarize the results.
Point: It may seem easy, selling real estate. However, there are many things that can go wrong. A serious, trained, attentive real estate professional is your assurance nightmares don’t happen to you.
This site will detail other examples as time goes on:
Now to the finish of the nightmare.
As I stated, the Johnson’s started foreclosure. Under the advice of their attorney, Ron and wife purchased the Johnson’s legal position. This took great efforts by Ron, Johnson’s weren’t receptive to the idea. It was critical to Ron and wife that they finally got it done. But that was just step one.
The foreclosure continues and now Ron and wife were being foreclosed upon by themselves. They had to do this to remove Dave from title. Of course this probably removes everybody from their ownership.
In working out the purchase of Johnson’s position Ron and wife had to come up with enough money that would bring Daves contract current. This pretty much drained their resources. They then had a requirement to pay the balance owed Johnsons within the next three years. Were Dave to make the payments he was obligated to, Ron and wife would have a break even situation for those three years. Of course Dave wasn’t into making payments.
Next is an interesting event. The attorney had Ron put a for sale sign on the waterfront lot, the one dedicated for a park for the waterfront owners. Now this was a shock to the neigbhorhood. In reviewing the document that provided donation of the property to the waterfront owners, it specified requirements to develop and maintain the lot as a park. This hadn’t been done. Ron and wife in essence, repossed the park. They were told to leave the for sale sign up for one year, which they did. Eventually, they sold the waterfront lot. The money went to pay Johnson’s. How popular do you think this made Ron and wife?
Note, Ron and wife were at the edge of a serious disaster. If they couldn’t end up giving title to the three they sold lots to, they were in deeeeep trouble and they knew it.
Ron and wife, tried to communicate the plan and status to the three buyers, but it wasn’t a pleasant journey, these few years.
So eventually they foreclosed on everyone. Scoundrel Dave, who offered no help during this process was legally off title.
When the foreclosure was completed, Ron and wife were a little short of the money’s needed to settle with Johnson’s, finally able to give the three their deeds.
Time was running out, the only proposal Ron and wife could come up with was to have each of the three pay a little more towards the purchase of the property. Two were willing, although not happy. One was so furious he refused. They had to find another buyer for that lot and partially built home, which they did.
So, in summary, The waterfront park was gone. One of the three walked from his asset, two of the three had to pay more than originally agreed, Dave walks, The Johnson’s and the attorneys got all the money that were a result. But Ron and wife kept their home and escaped without some of the terrible legal results they could have suffered.
This unlikely nightmare would not have happened had real estate agents been involved in just one of these purchases.
