Divorcing couples, we really don’t want that, but sometimes it does happen and in real estate, sometimes these problems that are going on can cost you a deal. So we want to talk about what the payoff and what if we have some things going on, like how does everybody sign off? What if people are getting along? What if they’re not? What if things are changing? There’s a lot of things that could be in flux super quick related to this in a real estate transaction. Nobody wants to go through this, but it does become a problem.
What if there’s some things that get paid afterwards? I can aspro hold back like you have extra money. What if there’s a shortage? What if there’s all these different things? Who gets it? What happens? There’s a lot to discuss here. That Shana Acquisto, she’s a real estate broker by day and an amazing wife by night. And we are super happy to be discussing this topic with you. So let’s go over insurance claim on a note.
We’re going to talk. We’re not talking about insurance divorcing couples. Yes. So I’m going to tell a little story because it’s going to kind of tie into this. This is a real life example that I’ve had. And we have a couple that we’ve helped many times in the past. And unfortunately, they are getting divorced. Well, they got divorced last year. OK, so I was named the realtor in the divorce.
So we were going to sell last year and it it didn’t they decided that that’s not what was going to happen. In fact, the wife was just going to stay in the home with the kids and the husband was going to move out. And the the the wife was going to pay off the spouse.
And he would be released from any obligations of the home. OK. OK, so sounds straightforward. What happened was they had a divorce decree and then this was a side agreement that they had like an amendment to the divorce decree. Sounds dangerous, right? Right, got it put together and it outlined all these details.
This is how much the wife is going to pay the husband. It’s going to be paid by this date and then it’ll be recorded and he’ll be released from all the obligations of the of the property. OK, so what happened was she paid him has proof of payment and, you know, everything was good. So he never paid another dime after that.
This was October 31st of last year. Fast forward. She decided she’s going to sell. And this is a neighbor, had a friend, whatever, that wanted to live in the neighborhood. So it wasn’t listed. We did not actually physically list it. But she decided, you know what, I think I’m going to go ahead and do this.
So we proceeded entered into a contract before we did. I did ask the following questions, just like you guys would. Let’s find out what your payoff is, because if it doesn’t get what you want, then we’re not going to do this. So I don’t guess contact your mortgage company and find out what your true payoff is. She did. And we got that number. We went through a few other things, all good, all good, all good. So a couple of things happened.
Well, she actually when it came down to it, her payoff was different. Then what they told her, why is that? I don’t know. She had extra charges on there, I believe, from not paying taxes. Right. And they somehow bunch that in there. And it seems like she did forbearance so she could have ties. Yes. She put a pause on her payments so she wasn’t making those payments. Well, here’s your pay off. When they gave her the pay off, they didn’t add those fees back in. So she had an additional fifty thousand dollars in. Fees, so a pay off statement is supposed to include all those items that
It didn’t. So what you have to do is ask in the beginning, which I did not do. Have you been in forbearance? Because I thought getting your official payoff from the bank would outline all of these things.
So to me, I believe that that’s a computer glitch on their part, on the bank’s part, because the system never was intended to have this forbearance item. Right. That was something that came up. So, you know, when some people can create like this computer system and put it all together and have it so it spits us out and it’s automated and all of a sudden this report comes out, I just don’t think there was a column or anything like that. So then they generate this payoff. That’s like, hey, here’s your official payoff. Yeah. And I’m not sure who that lender is, nor do we necessarily need to name them right now.
It’s a big bank, but big bank.
It seems totally wrong to request to pay off and to not actually get the right number. But after all, that is an amount that is due. So your seller would know about it. Like that number just doesn’t go away.
That makes her eyes. She felt that if she got that official pay off that had everything in it. Oh, I would agree totally as well.
So there is one issue. So we work through that. She says, OK, I’m still going to net this. I’ve got to pay it. Let’s do it right. OK, so we moved forward. Well, when the buyer got the inspection, there were some issues with the roof. I said we have a roof here that we know we trust. We’ll send him out. He went out and he’s like, Yeah. Yeah, it’s it needs to you need to file an insurance claim, so she did, and when the adjuster came out, our roofer met him out there and the adjuster said, you know, that she already got paid on this roof two years ago and. You know, I. Oops.
So when I contacted her, she said. Yeah, my ex-husband filed the claim, I didn’t know anything. He handled that, so what I was told is that he received those proceeds and put them, I don’t know, cash or whatever. But nonetheless, they did not make the repair. So they received the money. And that’s on our seller’s disclosure, received the money, but didn’t make the repairs.
So I think in that situation, I can’t remember exactly how this goes. But I think you get a certain amount. You get you deserve your money up front and not all of it. And then when you make all of the repairs and you show and document that it’s done, you get like an initial payment you do.
And then there’s some depreciation that they give you in their will that. So we were able to work through that with our roofer. And it was a little complicated, but we were able to work through it. However, what she’s not going to get is that depreciated value that she would have got two years ago. So moving forward, she’s like, OK, I’m going to deal with this. I’ve got to pay this deductible or whatever. Right.
So she deals with problem number two. OK, OK, so who halleluja got past all those obstacles? She has to find a place to move. Well, it’s a struggle, right? She’s looking to find a place. She has kids, her mom, and it’s really a struggle. Well. Her credits dinged a little bit. OK, so. It’s a crazy market out there, the rental market. Completely crazier than, I believe, what our resale market is, but anyway, it’s been a struggle. She was offering six months up front like a thousand dollars over per month.
Still couldn’t get something. Security people were either coming in above or they were like, now, don’t know about the credit or whatever. I mean, because her credit was not perfect. So it’s very challenging out there. So, you know, we’re still working through that.
We added time into she’s going to do a leaseback. So the current buyer’s allowed her extra time to be able to find a place to move, which is very, very good. So. The final walkthrough was Thursday. That’s yesterday, didn’t happen on I think it was Tuesday. We’ll get a call from the title company saying, hey, so the X Files has got to come in and sign off on some papers. Why?
Well, I said we have this agreement. She’s like, yeah, but because the deed wasn’t recorded, we need to know that this is still in play. Right. And we just need him because it wasn’t recorded. We know it was notarized and it was agreed upon. However, it wasn’t recorded.
So he needs to sign off on the deed. OK, so that was really challenging, right? Why so of course, the wife is like, well, I don’t want him to see what I’m getting here. I’ve been paying all these bills. I’m doing this. I don’t think it’s any of his business. Agree. So I said, you know what? I know him. I’ll call him. And I’ll let them know that this is what you’ve decided to do, and I’ll work with him to get it signed off on, because that would be great.
So it didn’t go as planned. I called him and he said. Not signing it. I said, no, it’s like, no, I’ll take 50 percent of whatever the the net is, whatever she’s getting us.
What if she’s not getting anything? He’s like, well, then I’m not signing off on it. What if he’s what if she’s paying?
Yeah, he’s not signed off on it then. So. I said, OK, well, you know, here’s this agreement that you signed, you know, you signed this agreement. It’s been notarized. So you’ve already agreed upon this and you’ve been paid, right? You’ve been paid. I said, OK, so you need to sign off on this.
I want half of whatever she’s getting, I know the market’s great, I know that she is going to be making money and I want my half. And I said how? I just don’t see this happening because of this, because, well, if you look down here, it says which clearly he has reached out and talked to somebody about it. Right.
She didn’t record it, it said it must be paid and recorded by October thirty first is like she didn’t fulfill the obligation even though it was paid. She didn’t finish it. I’ve still been on the hook. What if she didn’t pay? And what if I got dinged on my credit because she got foreclosed on? Well, you see the problem here, so deal’s off. I’ve tried to talk with him. A few times, and he’s not doing it, he’s like, you don’t know what I’ve gone through with her and I am not signing off on this.
So it was it’s been a long back and forth and deal’s off. So you’ve got the buyers who now they’re left high and dry. So what are they going to do? Well, they’re suing. So they’re suing for specific performance, which they have the right to do. So I tried to talk to them and say, hey, with this leaseback and all of this, if you. I would suggest. Find them another home, find them another home, you’re going to get paid, obviously this is a mess.
You’re probably gonna be able to get them in to a home sooner than they would in this deal anyway, right? Well, they want to live. They want to live here and live down the street from there, from their families. So it is a mess, a huge, huge mess that we’re working through. But the point of this is divorces are nasty. They may start off great, but there’s a reason people are splitting, you know, splitting, parting ways.
So when you have a divorced situation, you need to do a little extra digging. You need to know the current situation. Right. You need to look at the divorce decree. You need to look at all of any agreements thereafter and make sure they were recorded with the county. If they’re not, they are not valid. So really crazy.
The other point is, yeah, we’re going to talk about that here in a minute, but. Need to ask these questions, are you sure that there’s not really to protect yourself is to find out. Open title. Get a preliminary title work from the title company, and you’re going to be able to see if there’s anything. That’s a great point right there. Yeah, that that’s going to show you what you know, what lines are out there and kind of what’s going on.
Maybe somebody is attached to another, you know, lean to the property because they haven’t been paid. You just don’t know. So what are your tie to work in advance? Order your dogs do everything in advance. Ask who their insurance provider is. You know, we should do that, whether they’re divorced or not, who’s their insurance provider, and reach out to them and just find out if there’s been any claims filed.
You know what you’re just talking about there, Shana, are like realtor stories. And it’s good to hear these. Right. So the idea of telling all these different stories and giving examples and talking through things that have happened or are happening is so that maybe you have a different result. As an agent, we want you to always have the best possible experience. And that’s the reason that we share these things so that you learn every single day. So there’s three really good items within what you were just talking about that you must make sure that you do.
And maybe it’s a little encouraging to know that no matter how long you’ve been doing this business, I mean, it’s not easy. And this was a little thing that was missed. And, you know, it’s it’s very unfortunate, but. You have to remain calm and you have to work through this, this. Our job is to work through this for our clients, right. Not to get caught up in the drama, but to be like one step removed and be the calm force and try to handle it in the best way we can for everyone.
You want to hold the deal together, so you want to try to do that, but it’s not always easy. I do agree with that. So, Shannon, we’ve been talking for a while on that same topic, and we do have real estate here. We do have show your listings coming up in a little bit.