should have requesgted a Preliminary Title from the escrow the next day your contract was signed by the Seller.
The fact that the seller is a Real Estate Agent does you no good. They are in it for themselves. Your Real Estate Agent should be representing you. And that Agent should know how to maneuver through a Short Sale. And it is
not an easy process. That agent needs to stay focused on what is happening with the sale. The Agent should be contacting the Lender for the Approval Letter at least once a week. I find it hard to believe that the Seller did not know that he/she/they had a judgemet of $78k against the property, especially if it was a court case.
Your agent shouuld have called for a Preliminary Title as soon as the property was placed in escrow. And
your agent should have also asked the proper questions of the seller to determine if additional liens were
attached to the property. You need an agent who knows what they are doing? If your agent does not have Short
Sale experience, you are in for a bumpy ride.
I just completed a short sale for my client, and I was successful because I stayed focus. We had the deal
done in less than 30 days. But it was hard work and constant communication with the Lenders and the
the Sellers Agent, as well as Escrow. Don't get caught in paying the Lien off for the Seller, and don't buy the property if the Lien can't be removed for whatever reason.
Good luck, and God Bless!!
To be honest with you the agent representing you on the buying side should have asked the proper questions in the beginning along with making sure you had a prelim in the very beginning of escrow.
Before I write an offer I ask the listing agent some key questions to decide if they know what they are doing or not so I can let my buyer know how confident I am in the transaction closing.
Look to see if an agent has a CHS or CDPE by their name next time.
Seller isn't stupid; probably crafty.
$180 in San Diego is a rare find.
Looks like all you have to do is be patient.
You do have a Buyer's Agent representing you, right?
Good luck and may God bless
At this point it is unlikely this sale will close anytime soon or if at all, first mortage lenders will not want to take less if someone in second position gets anything form the sale as the liens get wiped out if they foreclose. i wold not put anything more than $1000 down to hold the house and make sure it is held by a bonded agent or attorney in their escrow account, do not gove any money to the seller to hold.
Please review my blog with tips and advice on buying ashort sale
What I see happening in the RE market is similar. The more sophisticated and cash laden investor has adjusted in anticipated loss or gain in value and is buying to hold and rent/lease while the average Johnny Six Packer and Linda Lunch bucket continue to straddle the fence.
Albeit RE is local and many areas of the Country are seeing an increase in sales the ongoing negative economic news, unemployment, political dysfunction, shadow inventory, etc. continue to stifle the RE market overall making it less desirable for the average buyer to pull the trigger.
However, having said that now that America has been downgraded money will become more expensive which is likely to drive interest rates up. Folks with ARMs and HELOCs may see an upswing in their loan balances and it could even trigger concern for investors.
So before that happens the best thing the RE professional can do is to inform fence sitters that if they're considering buying a home to live in for at least several years that now's the time to do it. Money will no doubt be more expensive and that can and probably will further exacerbate the RE market. Just my opinion for what it's worth.
I'm sorry you find yourself in this situation. I too am surprised that this was found so late, but it does happen on occassion. The listing agent really should have found this out, and if not your buyers agent should have....but that is neither here nor there now.
Is there a lawyer working on the short sale negotiations? He/She may be able to help the seller negotiate the liens, but my assumtion given that this is a short-sale is that the seller doesn't have the funds to pay off the liens and may be looking to you to 'help out'.
I would talk to your agent and your legal representaiton to figure out what the best next steps are for you. Good luck!