I put an offer on a short sale, it was accepted rather quickly, appraisal was done, all paperwork was signed the only thing left was to wait on a close date from the title company. 10 days ago I found out there was liens on the home. 3 liens city taxes, water and sewer bills totally about 11k. The listing agent seems fairly confident the bank will pay them and said to give him about two weeks, I believe he is being optimistic. I am not a very patient person and can't take it anymore and had to ask SOMEONE if they think the bank will pay?I offered 79k, the home was appraised at 80k and I believe the previous owners owed 100 and something ? I am going through the first time home buyers program if this is of any assistance. Thanks so much!

If you had asked me 3 years ago, I would have said, not a chance. But in today's market, you can not be sure. The idea of knowing in a few weeks is what I find hard to believe since often answers on short sales take months.

Thank you for responding so quickly! Honestly this process has went fairly quickly for a short sale I believe until I hit this road bump. I submitted an offer late August and was waiting on a close date buy my mid October. I know that a couple weeks wait isn't long to hear back but considering I'm a single parent and my lease is about up it feels like eternity!

My guess is they may come back with a counter but who knows. Do you have cash to put into this, if they come back with a counter ? And how much down are you puttng, and how much are you going to have to borrow ?
I assume you already have your loan approved ( not pre approved)

A counter on how much they will pay off on the liens? I don't have anything else to pay on it. I just have my money for close and homeowners insurance and the money that is already in enscrow. I already have final loan approval. I believe the amount I borrowed is 76 something. The crazy thing is to qualify for the first time homebuyers program with down payment assistance when I applied you needed a 620 credit score, I just scraped by with a 621. The government recently raised the credit score needed for down payment assistance on Nov 1st to 640, so basically if the bank won't pay these liens or the companies owed don't forgive the sellers debts, Im screwed.

City taxes will probably be paid by the lender.. others may have to b negotiated with seller since they r personal liens they should b willing to help u with the money needed to discharge the liens.. NEGOTIATE!

Update: The bank has agreed to pay all of the liens I mentioned before, but there is one lien left that I was not aware of that they will not pay and is a personal lien with a collection company. I believe its around 11k. The problem is this couple is divorced and the wife is involved with the short sale process and her husband is not. The lien is in the ex husbands name and the collection company won't even talk to the wife because the lien is not in her name. OH boy!

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Originally Posted by shortsaledrama

Update: The bank has agreed to pay all of the liens I mentioned before, but there is one lien left that I was not aware of that they will not pay and is a personal lien with a collection company. I believe its around 11k. The problem is this couple is divorced and the wife is involved with the short sale process and her husband is not. The lien is in the ex husbands name and the collection company wont even talk to the wife because the lien is not in her name. OH boy!!

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How is it that these liens keep popping up and surprising you? Wasn't a title report done?

What do you mean a "personal lien"? Is it a duly recorded lien on the property or not? The wife is the would-be buyer and the lien is against property belonging to the husband? So how does that affect the deal?

I was about to get a close date from the title company and a title search was finally done. The title co called the listing agent , who called my realtor, who called me and told me "there are a bunch of liens on the property". Well I wanted to find out what a "bunch of liens" consisted of so I did a title search on the county website and came up with the property taxes,water and sewer. My realtor told me there is one more that is holding up the sale, that it is a credit card in collections that belongs to the husband that the bank will not pay. I did a civil case search on the county website and found the case and it seemed to be taken care of but I can't read all the legal jargon. I have no clue what is going on and Im not sure anyone else who is working on this really does either, which is sad. ALl I know is that on the selling of the house most of the papers that I needed to sign as the buy had only the wife's name listed on it as the seller, but on the title the ex husband and the wife are both on it. I hope this all makes sense to someone otherwise it was all pointless rambling :)

Two issues, both husband and wife have to be involved in the sale, if the house is in both names, one party can not sell the house without the other signing also.

There is a time to walk away from a property, this may be one of them. There are 1000s of foreclosures that often sell less than short sales and there are 1000's of short sale offers.