[kimn3]

Putting in an offer for a great house but one that has 3 loans and 3 credit card liens.

They're asking us to pay off the credit card debt amounts, but it wouldn't change the total offer since it would come out of our down payment.

I'm guessing that just means that a portion of our down payment goes directly to the credit card companies, so less down payment cash goes to the current owner's loan companies.

Are there any concerns/risks with a transaction like this that we should be aware of? Is this a normal transaction?

This is the first time we're purchasing a home, so I want to make sure this isn't an unusual request with hidden potential issues...

Any tips are welcomed! Thanks so much everyone!

[Fr_Chuck]

Ok, the entire loan on a home has to be paid off at closing, so what ahappens, your "down payment" and a check from the new mortgage that you are getting is there at closing

They basically have checks for each loan on home, perhaps a check for back taxes and the such to send out. Then if there is any money over thoese the seller gets their profit on the sell.

The down payment is not specifily for the mortgage company, often the down does not even cover closing cost, real estate commissions and the such

[ScottGem]

When a property has liens on it, those liens MUST be satisfied before the property can be transferred. So I'm bothered by your statement that they are "asking us to pay off the credit card debt". They should not be asking you to do so.

What normally happens is that a representative of your lender attends the closing. You give a check representing your down payment to the person ahndling the closing. The lender then gives that person a check for the amount of the loan. So that the total agreed purchase price is paid. The closer, then issues checks to the lien holders and a check for any balance to the sellers.

It should not matter to you what liens are paid as long as you are given clear title.

If you do not have an attorney handling this purchase for you, you need to get one. If that are asking you to pay some of the liens, then that would be over and above the purchase price of the house.