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.
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.