I’m wondering what people do to protect against new debt liens being added to the property while the short sale is being negotiated? Or do you just hope they dont?
Thanks …
When you start negotiations, let it be known that at closing there will be a statement as part of the closing procedures, that would state that the Seller has not caused, or does not know, of any liens not listed on the title report. And further, that the seller indemnifies the buyer against such an occurrance. Title Companies are very aware of this problem and they usually include this statement in the closing docs. In effect, it extends the Warranty Deed beyond the title report. It is my experience that frauds head for the hills if they know that this document will be part of closing. To make it perfectly clear to them, include it as part of the contract if you like.