Legal Question in Real Estate Law in Texas
options
I have a house that i want to rehab, the owner has cancer and is in poor health, the owners brother has a lien on the property and wont get out of the way for me to buy this house. The owner is willing to finance it and allow me to rehab and then sell it and then pay himin order to do this the hard money lender needs first position. the brother in law will not alllow it. I want to borrow rehab money not rehab plus pay him off too. Is it possible to secure the house and rehab it and then sell it? I am thinking of a contract allowing him to let me have it and allow me to rehab then sell it and at closing pay him and the brother. I just dont know how to word it. Or if there is another option i am not thinking of.
2 Answers from Attorneys
Re: options
Have a lawyer check to see if the lien is valid. If it is, then pay him off. If it's not, file suit to clear the lien and ask for attorney fees. If not, just walk on the deal.
Re: options
You probably don't need his approval. If the lien is valid, buy the property subject to the lien or you could assume the lien. After it is rehabbed and sold, then pay everything off. The downside may be an accelleration clause which may or may not be activated.
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