Need advice on rehab...

Rehabbing, Fix and Flip, Rental Properties
1

Hi all,
I was hoping someone can give me some advise on this rehab project I’m taking on.

My offer is $650,000 with an ARV of $850,000-$900,000 and repairs around $68,000.

 Here's the senerio...The origianal price of $650,000 was contingent upon the inspection and termite reports. The reports showed extensive damage from termites and mold. I offered to the sellers to either bring down the price or do the repairs themselves. 

They chose to do the repairs and have started this week. We are suppose to close escrow next week but I found out today that the owners have 2 liens on the house. 

Now they are saying that we cannot close escrow until the escrow company gets the official amount of the liens which could take up to 4 weeks. This puts a crimp in flipping the house in time for the peak sale season (i.e. summer). 

I asked my realtor who has not been very cooperative if there was anyway I could agree to pay off their liens if they lower the asking price and we still close escrow next week. My realtor states that it's unethical to keep asking for a lower price and is getting very testy about it. She also says that you cannot pay off the liens that it has to go through the escrow company. Is this an option? Should I walk away from the deal? Is there any other way? 

The owner only owes 2 years left on the house so they have tons of equity and they are already packing and moving. Thank you to anyone who can offer any advice.
2

I agree the liens should be paid off by the title company at close of escrow. I don’t understand how it would take 4 weeks to determine what is owed. That should be able to be done in 1 phone call.

3

Hi Tom and thanks so much for your reply.

According to the listing agent, one of the liens is child support and there needs to be official papers from the courts to get the exact amount which they say can take 4 weeks. It just stinks that the sellers just now disclosed this information a week before close of escrow.

4

at this point you can either suck it up and wait or depending on your local laws, you could give notice to performance and thereby get out of the contract.