You get contract signed for 20k to wholesale. You check with your title company and there was a 10k second mortgage that the seller forgot to mention.
Are you the buyer/wholesaler still obligated?
What are the steps to follow with the misinformed seller?
Make them reduce the price by $10,000. I’m half joking but only half. The contract SHOULD have something in there about to protect you from an undisclosed lien. But if you stick with it, and you CAN talk them into lowering the price, keep in mind you may be able to talk the second lien holder into accepting less than 10K, which is just profit in your pocket.
Well, it doesn’t sound like a marketable title if a mortgage company has an interest in it. That will have to be dealt with one way or another…unless it has already been written off.
You can use it as leverage to renegotiate the purchase price. Or, you can add it to their existing mortgage and absorb the loss… if possible. My guess is to do the former, not the latter. If you do and they won’t renegotiate, just cancel the contract and move on.