Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Okay, so we are purchasing a short sale. Everything was going fine until this week. We are supposed to settle on Thursday. We get an email this morning stating that the Title company can't get ahold of the seller and evidently it came up that there is a substantial lien on the house that wasn't disclosed.
Where does this leave us? Should we wait and see? Cut our loses? We love the house.. it's in our price range, everything is great and we are packing up our stuff... are we dumb? I just feel totally lost! And as helpful as our realtor is (And he's been amazing) I just don't know what to think
Call the title company. They should be able to tell you exactly what problem they came across and what their opinion is of how it will affect the seller's ability to live up to the contract, provide clear title, and of the title company's ability to issue title insurance.
...So if this guy can't pay his lien what will happen?
Well, you don't close until the lien is removed. Since it's a short sale, it's unlikely the seller can afford to pay it off. You can try going back to the bank to see if they will deal with it. If no one will cover the cost, then the deal is off.
Hubby tried but they were still away for Easter. He'll be calling tomorrow though. So if this guy can't pay his lien what will happen?
A) - The problem with the evolution of the Short-Sale process is that it hasn't 'evolved' at all! Offers have to be submitted to, and signed by, the Owner/Seller. They have previously provided the Lender with documentation which supports their claim that they can't pay AND whom they owe what!
A) - That's where you are at. The Title Company has discovered that there are liens on the house that the Owner/Seller did not disclose.
A) - Could be a Second Mortgage or some oher kind of 'cloud' on the title.
A) - Obviously, whatever it is the Owner/Seller cannot/will not pay. So you're dead in the water.
A) - As suggested, a call to the Title Company might get you more info, but it's unlikely that they will be able to provide you with a reliable time frame. The original Lender waits on the Owner/Seller. the Owner/Seller waits on the 'Lien Holder response. The Title Company waits on 'all-of-the-above and so do you!
A) - I've not had one Short Sale close in less than five months and one went over a year!
A) - Keep this offer on the 'back-burner' and keep looking. Then buy whichever opportunity comes through first.
Hope this helps . . . .
The ones negotiating the short sale really dropped the ball on your deal. They should have had title identify all Liens, regardless of what the seller says.
If it goes into foreclosure the second lien holder gets NADA, If they negotiate they might get as much as $1000.... hmmmm Zero .... $1000 .... if the deal can be made they need to jump or lose it all. and unfortunately you would lose it too, until the property went through foreclosure.. where you can likely get it cheaper....
Yours is not a unique situation but unfortunately the negotiator dropped the ball. get the negotiator back on it....
The bummer on waiting for it to go into foreclosure is that we wouldn't get the 8k, we would also likely miss out on the USDA Rural program we are going through..
Ugh. I'm at the point now where it feels like we should cut our loses and try to find another house to put a contract on by the end of april.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Short sales - Out of control . . .
