My wife and I are buying a new personal residence. We have a contract on the house, but the financing on the Seller’s side concerns me. The price is about 700k, but he has loans on the house of 820k, and has not paid property taxes in 2 years. He recorded 5 private loans on the property on the SAME day. (Can u say crook). What can I do to safeguard myself so that EVERYTHING is current when I close.
I’m thinking that I have to have proof of satisification of Lien for each of the liens on the property. We are also asking for a proof of funds from seller that he has the $$ to bring to the table.
Lastly, this house is in N. Calif, and it is owned by a realtor.
Get Title Insurance. Close with a title company. You will have all of your concerns handled, AND, you won’t be the one chasing all the payoff requests, they will.
MrHemi- You are certainly entitled to your opinion but last time I checked obtaining private financing whether through one or multiple security instruments did not constitute a crime.
As slondeau said, get title insurance and be done with it.
thank you all for the responses. So to summarize, a Title company will not allow the escrow to close unless ALL the liens are removed and the property Taxes are brought current.
We are using a title company. We are just asking proof from the seller that they can wipe out all the liens and also bring the property taxes current.
The reason that I said that the multiple loans were a crime was because they WAY over leverage the property and the loans could easliy be defaulted on…
Thanks Again,
Mr. Hemi (The real ones, not the new ones)
Yes, the title company is insuring that they will indeed be paid off. If for some reason they are NOT, THEY are responsible. (Hence the reason you buy title insurance) File a claim. However, any title company is going to do what they can up front to ensure that all liens are paid off at or before closing.