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We made an offer on a house where seller has been served a notice of Lis Pendens by his bank (lost job, stopped making payments).
This is a regular sale. Seller has plenty of equity in the house and from what I'm told by the Realtor, the Title agency will take care of paying back the bank with the net proceeds and bank will remove the Lis Pendens.
I see that taxes etc... are up to date.
I'm skeptical by nature so does anyone have experienced that before? Are there any risks on the buyer side (of deal not going trough with seller's bank..etc?)
Of course I will only purchase with title free and clear of any liens.
Actually what you have been told is accurate and in the wide world of messed up shortsales, REOs, and other kinds of distressed sales the relative ease of doing a deal with a "simple" distressed seller who still has equity in the place and needs to sell for factors like loss of income is generally easier than anything else. Although it can be emotionally & financially tough on the seller the simple fact is that by selling they will get the equity they have and you will get a home that (hopefully) the seller has taken good care of.
The title company will perform a title search to determine the status of any liens and then the funds that you pay (well probably your lender will actually write the check...) will be used to settle up and anything left over will go to the seller to do whatever they wish...
From a buyer's perspective this is essentially a normal sale. The seller should be liable for any disclosures, no crazy asset managers from the lender will sit on the deal, their should not be any crazy requirements at all.
Yeah house is lived in and spotless.Seller is very emotionally attached to this house exactly as you mentioned but it should be a win win situation in the end.
Quote:
Originally Posted by chet everett
Actually what you have been told is accurate and in the wide world of messed up shortsales, REOs, and other kinds of distressed sales the relative ease of doing a deal with a "simple" distressed seller who still has equity in the place and needs to sell for factors like loss of income is generally easier than anything else. Although it can be emotionally & financially tough on the seller the simple fact is that by selling they will get the equity they have and you will get a home that (hopefully) the seller has taken good care of.
The title company will perform a title search to determine the status of any liens and then the funds that you pay (well probably your lender will actually write the check...) will be used to settle up and anything left over will go to the seller to do whatever they wish...
From a buyer's perspective this is essentially a normal sale. The seller should be liable for any disclosures, no crazy asset managers from the lender will sit on the deal, their should not be any crazy requirements at all.
The escrow company will make sure you are OK in the purchase. Nobody will get your money until they are sure the sale has closed and been recorded.
I would not give any earnest money to the seller. But either your real estate agent or the escrow company should be holding on to that for you.
Be sure to pay for the title insurance. I would make sure that the bank knows that the house is in escrow. They genuinely do not want to take the house back and they will be cooperative about the sale.
Yeah I gave the EMD to agent/escrow company.She told me the title agency will take care of everything. Seller is paying for owner's title insurance.
Hopefully everything goes smoothly.
Quote:
Originally Posted by oregonwoodsmoke
The escrow company will make sure you are OK in the purchase. Nobody will get your money until they are sure the sale has closed and been recorded.
I would not give any earnest money to the seller. But either your real estate agent or the escrow company should be holding on to that for you.
Be sure to pay for the title insurance. I would make sure that the bank knows that the house is in escrow. They genuinely do not want to take the house back and they will be cooperative about the sale.
I have a similar situation... I was in contract to buy a condo, but right before closing the HOA's managing agent told me there was a Lis Pendens against the unit and they were not able to clear title because the bank wasn't being responsive... so I couldn't close. The Lis Pendens is against the previous owner, but she deeded the unit to the HOA and moved out approx 2 years ago (apparently no one can find her). Also, the purchase price would have more than covered the full amount of the Lis Pendens, so I don't understand why the bank could not have just been paid at closing?
The HOA's managing agent offered me the chance to do a lease option with the unit until they could clear the title. But my concern is, what happens if the bank decides to foreclose? Could they just sell the condo at auction or do they have to contact the HOA (who is now the owner of title) first? What rights do I have if I've signed a lease option? The option gives me equitable interest to the property but is that wiped out if there's a foreclosure?
Just not sure how this whole process works when the lis pendens is not against the current property owner.... any help/insight would be greatly appreciated!
I have done nearly everything to get a certain house, all the preliminary paperwork, etc...The MAJOR bank, who owns the house cashed my EMD and charged me $500 for the appraisal now tells me they have a lis pendens that needs to be addressed before moving forward with the final process. I guess I don't understand how they could even put it up for sale with the black cloud hanging over. I want my money back...all of it...because they won't sell the property until that is removed. CONFUSED AND ANGRY!
Last edited by 5000bfree; 01-21-2015 at 12:16 AM..
Reason: misspelling
I have done nearly everything to get a certain house, all the preliminary paperwork, etc...The MAJOR bank, who owns the house cashed my EMD and charged me $500 for the appraisal now tells me they have a lis pendens that needs to be addressed before moving forward with the final process. I guess I don't understand how they could even put it up for sale with the black cloud hanging over. I want my money back...all of it...because they won't sell the property until that is removed. CONFUSED AND ANGRY!
Is it the bank that filed the lis pendens on the property? If so, it is a very easy issue to resolve and there is no need to fret. You want to make sure that there are no pending lawsuits against the property when you close (you want clear title!), so it is in your interest for the bank to deal with the lis pendens prior to closing. As long as it was the bank that filed the lis pendens it is a very simple matter to resolve. Really.
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