Ray, Other/Just Looking in California

Questions on HOA Liens. A REO property that I am looking has HOA Liens recorded.

Asked by Ray, California Thu Feb 5, 2009

Is this something serious to avoid making offers ? Does this affect the sale process. What is the procedure to release the liens? How long does this take ? Are attorneys involved in releasing?
Thanks for all your answers.

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Ray; Prior to closing your escrow you will receive a final Title Report that you have to approve. On this report you will find out if there are any liens that are not going to be released for some reason. Usually, all liens are cleared prior to closing and you will own the property that you are buying, subject only to the loan that you secured to purchase the property. All other liens should dissapear including the Home Owners lien. The Title Company that insures and warrants the legitimacy of the title for the property you are buying will guarantee that you are purchasing the property free of liens. Your real estate agent should be checking the title report with you and clearifying if there are any unexpected problems that you should clear prior to closing escrow. Sometimes, even Title Companies make unexpected mistakes so is always very important to approve the Title Report.
1 vote Thank Flag Link Sat Feb 7, 2009
Ray,

What is the total dollar amount of the liens due? Are you aware of all the liens? You have options. As Diane suggested below...negotiate! Your agent can request the bank pay for the liens (and perhaps past due property taxes) in your offer, they may refuse. Worst case scenario, if the property is worth it, pay the liens off during escrow and consider it as part of the cost of the transaction. Each REO property will be different because every bank has its own proceedures. Having your agent navigate this will help protect you.

Kind Regards,

Marcie Sands, REALTOR
Simply The Best Real Estate Company, Inc.
760-644-1562
0 votes Thank Flag Link Fri Feb 6, 2009
Hi Ray,

It is escrow's job to make sure that all bills due prior to you owning the home are paid. While you are in escrow title research will see that lien and there could be others. They will be paid by the seller (bank) at the close of escrow which releases them from the property. They usually find past due property taxes too. Attorneys are not usually involved in California real estate transactions. Don't be afraid to jump in on an REO. Negotiate your best offer (with your agent) and then do all your own research. A good home inspection is a must for your protection. Good luck!

Diane Conaway, Broker Associate, RE/MAX United, (760) 749-2888
Accredited Buyers Representative
0 votes Thank Flag Link Fri Feb 6, 2009
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