Hi, I have a Real Estate
Question: A good friend of mine owns a small investment company in Southern California(buys and flips property on a small scale...2-3 per yr). He recently bought a home from a seller that was behind on their payments(NOD recorded) and on their way to loosing their home to foreclosure as they had no employment, home did not qualify for a loan modification, they could not do a short sale(no equity at the time to pay for all amounts do on the home) and they were looking for someone to help them out. My friend offered to pay for the balance on the mortgage
, all behind interest and payments do, Escrow
, Title, Attorney fees to have a recorded lis pendens removed...and he also gave sellers $20,000.00 to find a place to live after the close of escrow.
They went through the process with no Realtors involved and escrow took care of the transaction from opening to close. Once the property closed and recorded under my friends corporation, I found out through another friend that had bought a property in similar status that they missed the Equity Purchase Agreement and not made it part of this transaction. My friend says that he was not aware of the need for that contract and even escrow said they were also not aware the Equity Purchase Agreement needed to be part of this transaction.
Now the questions...
1. What kind if legal issues can come against my friend for not making the Equity Purchase Agreement part of this transaction.(He was depending on escrow to make sure proper procedure was followed).
2. Can this Agreement be signed now that escrow has closed(seller is willing to sign).
3. What if anything, can be done to remedy the situation now?
I hope I did not confuse you and made myself clear enough to expect some answers from you.
Thank you in advance for your prompt response.