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We are two days away from closing on our first home. Two days ago I found out from public court records that the sellers bank has filed a foreclosure notice because the seller stopped mortgage payments about two years ago. Obviously, they did not disclose this to us on the disclosure. Our state requires the seller to disclose any legal action or threatened legal action against the property. I am assuming that the seller had several notices from the bank since they stopped payments a couple of years ago.
I want to walk away, can I ask that I be given my earnest money (5 figures) or will I lose it?
I registered my kid in the school, we toured the school together, I already got all the utilities set, I have booked the movers, I am required to leave my rental at the end of the month and now this!
We are two days away from closing on our first home. Two days ago I found out from public court records that the sellers bank has filed a foreclosure notice because the seller stopped mortgage payments about two years ago. Obviously, they did not disclose this to us on the disclosure. Our state requires the seller to disclose any legal action or threatened legal action against the property. I am assuming that the seller had several notices from the bank since they stopped payments a couple of years ago.
I want to walk away, can I ask that I be given my earnest money (5 figures) or will I lose it?
I registered my kid in the school, we toured the school together, I already got all the utilities set, I have booked the movers, I am required to leave my rental at the end of the month and now this!
My realtor went ballistic when I told her!
How is this material to your choice to buy the home?
If the condition is acceptable, the price is acceptable, and the location is desirable, what does it matter, as long as you can get it closed?
Is it a short sale, or some other reason that would discourage you from owning the home?
The seller owns other free and clear properties; it appears they made a strategic decision to go into foreclosure and exploited the slow speed of the foreclosure process to stay in the home while having other resources. I am concerned about their motivation and to suspect a scam.
The seller owns other free and clear properties; it appears they made a strategic decision to go into foreclosure and exploited the slow speed of the foreclosure process to stay in the home while having other resources. I am concerned about their motivation and to suspect a scam.
Lawyer up and have your contract read if it will help you.
You are 48 hours away from owning a house you like, and distracted by details.
What does it matter to you what the seller is doing? As long as the seller is providing you clear title, and you can't close without clear title, move forward and let the seller get into whatever trouble he wants to get into. It doesn't/shouldn't matter to you at all.
We are financing it; and it is a 'potential' short sale. The listing agent is sitting on the fence with respect to going to the lenders with the short sale proposal. She threatens it but has not actually done it, it was clear to her many months ago that this was a short sale after going over the loan amts, back taxes owed etc.
I ask but even if it is not I see no difference between the one you know was a short sale and the one that is in foreclosure but the seller has either the cash to come out of pocket for the difference, has enough equity or has previously worked out another arrangement.
Title insurance is exactly what I worry about. A basic owners policy with all the printed exceptions in force and no additional negotiated endorsements is a weak shield if the seller is planning a scam.
I, a first time buyer, caught at least 3 mistakes on the title commitment. What good is this title search and the insurance based on it?
I consulted an attorney who told me that the basic title insurance policy is not very good, which is why the lender requires a closing letter from the title insurance underwriter and additional endorsements.
I ask but even if it is not I see no difference between the one you know was a short sale and the one that is in foreclosure but the seller has either the cash to come out of pocket for the difference, has enough equity or has previously worked out another arrangement.
No, we spent a lot of money on that one, but finally did not put in an offer, in large part based on advice we got from members here.
This is another one, where we thought we had found a good one in the same locality and which did not have all the problems associated with the earlier one. Unfortunately, the further we run from foreclosures and short-sales, the faster they catch up with us!
Title insurance is exactly what I worry about. A basic owners policy with all the printed exceptions in force and no additional negotiated endorsements is a weak shield if the seller is planning a scam.
I, a first time buyer, caught at least 3 mistakes on the title commitment. What good is this title search and the insurance based on it?
I consulted an attorney who told me that the basic title insurance policy is not very good, which is why the lender requires a closing letter from the title insurance underwriter and additional endorsements.
You have an attorney and an agent, yet go on line to a national forum for input from people you have never met?
Listen to your attorney and agent, both of whom are more up to speed on your transaction, and more locally focused than various people on this forum.
Title insurance is exactly what I worry about. A basic owners policy with all the printed exceptions in force and no additional negotiated endorsements is a weak shield if the seller is planning a scam.
What is the scam that might be in the works? It sounds like the seller was one of the smart ones who sold before actually having to go through a foreclosure. The title company is the one at fault if they missed something and gave you free & clear title to the property.
Quote:
I, a first time buyer, caught at least 3 mistakes on the title commitment. What good is this title search and the insurance based on it?
Just out of curiosity, what were the mistakes?
Quote:
I consulted an attorney who told me that the basic title insurance policy is not very good, which is why the lender requires a closing letter from the title insurance underwriter and additional endorsements.
You don't have your own attorney for this closing? Are you sure the one you consulted wasn't trying to scare you in to hiring him?
I've never had an issue with basic title insurance - it pretty much covers everything you need. From what I understand, if you want to add on for more coverage of loss, you can do so. But what would that be? The basic title insurance should be more than enough.
Best of luck to you. Hope it all works out!
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