I'm sure you are overwhelme with all this new information coming your way. If the house goes on foreclosure most likely all liens will go away at the time that bank takes on the deed. It's a complicated process but the foreclose bank will have to deal with. It might take some time to settle all 3rd party liens before the property goes on the market. Once the property comes back on the market, make sure you ask for a title policy from a title company. Most likely bank will give you a limited warranty deed but the title policy will show if there are pending liens on the property. If you are financing this house, your lender will require to have a clean title before they fund the transaction. I know that it's very frustrating but if you have further questions feel free to contact me. Carlos Say at http://www.houstonfirsthouse.com
I just closed on a short sale listing where we eventually found out there was a $9000 mechanics lien for a new roof that was put on and never paid for. The bank, Chase, stated they would not pay that lien at the price they had accepted. I was able to negotiate the lien down to $1500 and the buyer paid that directly at closing. So in the end it worked out for everybody.
Remember the lender can always pull their approval. Even if nothing changes it can happen. Good luck with your purchase. If you are already paying close to or fair market value you have a better chance of the bank accepting the offer they have already approved. Just know anything can happen. Short sales are not for the faint of heart!
Best of luck to you.
REALTORÂ® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
Impossible to tell what position the lender is in.....so many many factors.
Does the investor have other properties in the neighborhood?
Do they have mortgage insurance?
How far is the buyer behind
and just a million other issues they must calculate.....and even then sometimes it does not seem to matter.
Sometimes what is a good deal for the buyer, seller, lender and all parties involved get thrown out the door, foreclosure department does their deal and returns it to HUD, Fannie Mae, Mortgage Insurance company, or keeps it in their portfolio...
Good luck with this one.....keep pushing them...maybe you can work something out.