Ask Experts Questions for FREE Help !
Ask
    shortsaledrama's Avatar
    shortsaledrama Posts: 5, Reputation: 1
    New Member
     
    #1

    Nov 5, 2011, 05:54 PM
    Questions about buying short sale with liens?
    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!
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,302, Reputation: 7692
    Expert
     
    #2

    Nov 5, 2011, 06:00 PM
    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.
    shortsaledrama's Avatar
    shortsaledrama Posts: 5, Reputation: 1
    New Member
     
    #3

    Nov 5, 2011, 06:07 PM
    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!
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,302, Reputation: 7692
    Expert
     
    #4

    Nov 5, 2011, 06:24 PM
    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)
    shortsaledrama's Avatar
    shortsaledrama Posts: 5, Reputation: 1
    New Member
     
    #5

    Nov 5, 2011, 06:36 PM
    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.
    shortsalekim's Avatar
    shortsalekim Posts: 1, Reputation: 2
    New Member
     
    #6

    Nov 6, 2011, 11:00 AM
    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!
    shortsaledrama's Avatar
    shortsaledrama Posts: 5, Reputation: 1
    New Member
     
    #7

    Nov 7, 2011, 01:33 PM
    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!
    AK lawyer's Avatar
    AK lawyer Posts: 12,592, Reputation: 977
    Expert
     
    #8

    Nov 7, 2011, 11:24 PM
    Quote Originally Posted by shortsaledrama View Post
    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!!
    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?
    shortsaledrama's Avatar
    shortsaledrama Posts: 5, Reputation: 1
    New Member
     
    #9

    Nov 8, 2011, 05:21 AM
    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 :)
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,302, Reputation: 7692
    Expert
     
    #10

    Nov 8, 2011, 06:50 AM
    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.

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Renters buying their residence under short sale [ 6 Answers ]

We are in the processes of purchasing the home we've rented for the past 20yrs under "short sale'. Since we are the one's purchasing the home do we need to pay rent? We are in the first stages, but overall everyone one knows that we are buying? So do we have to pay rent or not? Is there a law...

Buying a short-sale property with tenants [ 1 Answers ]

Hi! We've put in an offer on a short sale property as a rental investment, and am currently waiting on bank approval. There currently are tenants in the house six months into a one year lease. I actually consider this a good thing - it means no downtime in income while looking for a tenant. ...

Need advice on buying a short sale and prior liens on the property. [ 6 Answers ]

I am buying a home as a short sale. When I went to sign the papers, they told me it had a lien on it. How can the lien be removed the owners don't have any money and the guy called, and they said they would not remove the lien. How can I get it off so I can buy this house?

We're buying a house in a short sale. Is it possible to evict the tenant. [ 1 Answers ]

We plan on living in the house as our primary residence.

Buying a short sale house [ 1 Answers ]

I bid on a short sale house in June 2009 and received a call from them after 10 months of waiting to go ahead buy the house but after we did the appraisal the house is no longer worth what they are selling for. It was appraised for less than 50k so, we made a bid again for the amount of the...


View more questions Search