Legal Question in Real Estate Law in California

Neighbor's actions scare buyer from completing purchase

My home has been approved for a short sale and there was an offer made and accepted. Two days prior to close of escrow, my neighbor decided to cut and remove two of my gates that were connected to a property line wall stating that it is his wall. The buyers insurance agent took pictures of him in the act and brought it to our attention. Due to his actions, the buyer has decided to not purchase the property and now I am facing foreclosure. We disclosed the level of difficulty we had with this neighbor and his insisting on being the one that owns the wall. The home is vacant and I now live in another state. Do I have a case and if so, how much could I expect to sue this man for by tormenting my family and causing further financial hardship?


Asked on 2/01/09, 3:03 pm

2 Answers from Attorneys

George Moschopoulos The Law Office of George Moschopoulos

Re: Neighbor's actions scare buyer from completing purchase

If you can prove what you say, you have a case for intentional interference with contract and prospective economic advantage. The damages would be somewhat hard to prove because either way (short sale or foreclosure) you would not have seen money from the sale. However, you might be facing a deficiency judgment depending on the terms of your original loan if the home is foreclosed which you ordinarily would not have faced. Additionally, you would have to find a way to quantify the damages in the difference to your credit score between a short sale and a foreclosure.

If you are serious about pursuing this, let us know.

Best of Luck!

www.SoCalConstructionLaw.com

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Answered on 2/01/09, 10:03 pm
Daniel Harrison Berger Harrison, APC

Re: Neighbor's actions scare buyer from completing purchase

You may be able to sue for intentional interference with contract or economic advantage and seek whatever your damages are. I'm not sure what your damages would be, however, since you are short selling the property, and are likely not continuing to pay the taxes, insurance, mortgage or other expenses. Are you? Also, if the next buyer offers a lower purchase price, and the bank agrees to it, how would that affect you financially? Perhaps, you will be 1099'd for a greater loss on the bank's part.

If he was tormenting you and your family, you can sue him for intentional infliction of emotion distress, although you will need to sufficiently prove the amount and severity of the distress. Most certainly, you should consider how much money and effort you want to "invest" into going after your former neighbor, which may be more than you will ever get from him. Just something to think about.

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Answered on 2/03/09, 4:39 pm


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