Slander

[kameece]

I am living in Virginia.

Can anyone tell me if I have grounds for legal action on the below scenerio?

I have a home in Foreclosure (West Virginia) but have had it postponed while trying to sell via Short Sale. A neighbor has apparently been approaching the potential buyers and telling them that the basement has flooded and that the refrigerator has leaked causing damage to the flooring, sub floors etc. I have lost 2 contracts due to this person telling these lies. The Foreclosure is due to a divorce where the judge ruled that my ex continue to pay the mortgage until the house sold but he stopped paying in November of 08. The mortgage company only alerted me in April of 09...too much time had gone by for me to be able to rescue the home. My credit is trash now and I need to get the house sold but again, have not been able to due to this person. Is there anythign that I can do????? Thank you.

[quincy]

If the basement has flooded and if the refrigerator did leak, causing damage to the floor and subfloor, then, no, there is little you can do to keep the neighbor from speaking to potential home buyers and advising them of the home's defects. These known defects should be listed on any seller's disclosure form, anyway, so a potential buyer would be aware of any water damage.

I imagine that the house is being sold in "as is" condition, so any serious buyer will be having a home inspection prior to purchase, anyway, and home defects, if they exist, will become known. Your neighbor's comments should not deter any serious buyer (although the fact that you have a lousy interfering neighbor MAY be a determent).

If the neighbor is lying about the condition of the home (is he interested in purchasing it himself, perhaps?), you may have some recourse.

The first thing you may want to do is to talk to the neighbor and let him know that he is discouraging buyers from making an offer and, by doing so, he is contributing to the reduction in the market price of the home and, by doing so, he is also lowering the market value of his own home. It is in his best interests to have the property sold rapidly and at the highest possible price.

In addition, the lower the sales price, the more likely it is that a lower income buyer will purchase the home, or a real estate investor with plans to rent the home out - this fact may, depending on the sort of neighbor you have, be another reason for him to shut up. He should want to encourage any sale to buyers who will keep the home up and be an asset to the neighborhood and neighborhood home values.

You should speak with your realtor and inform him about what your neighbor is doing. Realtors showing the home can be warned about this neighbor and be able to prevent the neighbor from approaching their clients during a showing. A realtor has an interest in having the house sold, just as you do.

Although it is possible to "defame" property and pursue legal action against one who does so, such an action generally involves questions on ownership. Defamation in your situation could potentially be possible because of your neighbor's implications that you are lying about the home's condition to facilitate its sale, but I do not see that any defamation action would be worth the time or the expense in pursuing. You could consult with an attorney in Virginia, however, to get another opinion based on ALL of the facts.

In addition to the above suggestions, I would also speak to your divorce attorney about your ex-husband's violation of the court order.

[kameece]

Hi. I guess that I forgot to mention that NONE of these things have happened to the house and it is in very good condition.

This neighbor did in fact have her parents put in a contract which they then retracted not too long ago. Her home is the same model as mine but I have a completely finished basement as well as a large deck in addition to many other upgrades and ammenities that she does not have. She has been telling other neighbors that she does in fact want to buy mine and hers is on the market but for a higher listing price since mine is in Foreclosure and trying to sell on a Short Sale.

She claims that she has had a home inspection done on my house but my realtor denies the fact as no home inspector has contacted the office for entry. There is no lock box on the door as it was under "contract" so anyone wishing to carry out a home inspection would have had to contact the realtor directly for access.

It is for sale "As Is" since it is a Short Sale but again, they would have to gain entry via my Realtor. He is aware and has advised others in his office of the rumors that she is spreading, but this has been going on for months and this is the 3rd contract that has backed out, all claiming that a neighbor has told them of damage that has not been disclosed.

She is not deterred very easily and I fear that any confrontation may turn very ugly very fast.

I appreciate your advice and will try to figure out a way to approach the subject with her in a manner that will cause the least amount of trouble as possible. She is the type of person who doesnt listen to the law either as she has been cited for mouthing off to police officers in the past so it is a very tricky situation.

She is costing me money and credit ratings by not allowing my home to sell in a timely fashion and I need to put an end to it quickly.

Thank you very much.

[quincy]

Another thought:

You could have an attorney draft a cease-and-desist letter to the neighbor, warning the neighbor that false statements made to potential buyers about the condition of your home also falsely imply that you are lying to potential purchasers about the home's condition, and that such implications are defamatory. The letter could advise that legal action may be pursued against the neighbor, should the neighbor not immediately refrain from interfering with the sale of your home.

Again, I do not see that you have a defamation action that is worth the time or expense of pursuing, at least from what you have posted here, but the threat of such action may put a stop to the neighbor's nonsense.

Good luck.

[kameece]

Thank you again. I really do appreciate your thoughts and suggestions. I just feel as though I need to have something in my back pocket in case this continues and I keep losing contracts on a perfectly beautiful house.

And by the way, my Divorce Attorney doesnt feel as though I have enough of a case against the Ex in regards to his court order violations even though there are multiple infractions.

I really appreciate your responses!

[quincy]

You're welcome, kameece.

Good luck with the sale of your home.

[kameece]

Wanna buy a nice house in WV?