You have a right to see all the documents required in your transacton. If you have been in contract with the seller on this the preliminary title report is already done. You should get a copy of it as soon as it comes in. It is an important document for you to read. It will tell you just what liens are on the property. Many times an owner will have personal liens on his property that must be satisfied prior to closing with you. I am finding that more and more banks are just not willing to pay these liens, like back child support, judgements, ect. As John said it is not unusual for a seller to say to you that you need to pay off something for them if you want to close. It is always a good idea for you to read your title report. If there are any personal liens you think the bank may object to, then you need to find out if the seller is planning to pay them. And don't let them tell you the price can be adjusted to accomodate them, it most likely cannot! This I believe is one of the greatest reasons short sales don't work. The buyer is asked to come up with money they were not expecting, if they want to close. Ask for the report Monday morning! Also, someone may ask you to pay for a 3rd party fee to negotiate with the bank. That is not your fee either! I have heard of buyers being asked to pay as much as $15000 for a fee if they want to close. Find out up front what is expected of you, and what the liens are.
Best of luck to you,
Prudential Ca Realty
It sounds like the short sale letter portion of this question has been answered. As far as Title goes, think of it like a totem pole and your lender will always be in first position. The only exception to this is delinquent property taxes, so title must be clear in order finalize the purchase.
Hope this helps.
Yes, yes....and so does your agent. I'm concerned that you feel the need to ask this. Part of escrow will be preliminary title and you get a copy of that also.
You should be getting all this from your agent....so give them a call and congratulations on the purchase.
You have the right to see the short sale approval letter. Ask your agent to get you a copy. The title company cannot close unless the property is clear of any liens, judgments, and any other potential claim that can be used against title. The escrow company should be sending you a copy of the preliminary title report, if not ask your agent for a copy.
When the bank is stating the amount they MUST net, check with the listing agent & the escrow company that this number doesn't make your file 'short'. Meaning the bank will accept X price but someone needs to bring in a few thousand dollars to make that work.
Also look for wording like "Bank reserves right to pursue for deficiency judgment in the future OR The short pay off will release the lien paid in full". Make sure the seller will sign off on either case, if not, further negotiation may be required by the listing agent.
Realtor Since 1996
Short Sale Expert
During the escrow period you will be provided with a preliminary title report which will show outstanding liens. When you close your transaction you will receive a title insurance policy that guarantees that your title is clear.
The above is a quick view of only part of a complex transaction. I hope you have your own agent. The above questions and more that will undoubtedly come up should be answered by your agent.