Chosen by Asker

If you are trying to do the 8000 tax credit, then drop this today. Period. Unless ALL!!!!!! the lien holders sign off ont he deal, which means that they will totally give up on getting any money, you will not be able to settle. In this case, I promise you that there will be NO 11th hour. You really are pushing it on the 8000 credit. Many lenders have stopped taking loan apps and a promise to settle by the end of Nov.

by real estate guy

1 month ago

Asker's Rating: 

if the Seller cannot close by the closing date set out in the purchase contract, then the Seller is in default and you are entitled to your earnest money back. More than likely he will not close, because he can't pay the liens. The contract would have stated that he will sell with clear marketable title. Timing is the problem here, but go back to the agreed to closing date. If that has passed, then you can go on and buy another house and get your money back.

by DeeDee- 1 month ago

That depends what contingencies you had in your offer or contract to allow you to back out, and if that lists a deadline for closing. I take it you had no agent or attorney looking out for your interests when you made the offer?

by efflandt- 1 month ago

If you already put money down then you will lose it if you back out of the deal now. Seems like you have to wait until the contract runs out first. After that if there is still no response from the seller I think you will legally be able to move on to buy another house. I doubt you'll get the $8000 tax credit. We just put an offer in on our new home and the mortgage company says it could take up to 60 to close. Good luck!

by ~*Mama-of-Two*~- 1 month ago

Sounds like a bad situation to me and I would get out of it if I were you. Even if somebody answers your questions for you on here (unless they happen to be a trustly real estate agent from the state you are buying your house in) you should really contact somebody locally asap and ask them all these questions. Call the bank that's giving you the loan or just a another trusting real estate agent to ask them questions. Good luck.

by lulu- 1 month ago

seller cannot convey title unless he pays all those liens off at closing. this closing will never occur.

by David Z- 1 month ago

Yes, I would write a withdrawal of offer notice to seller as soon as possible.

by Realtoratheart- 1 month ago

What does your contract say? Who drew up your contract - your lawyer? Your lawyer should have protected you from such an eventuality in drawing up the contract. Now, unless your contract specifies that the seller must deliver up good title by Date or seller is in default (which is what it should state!), you could be in big trouble here. If seller does not pay off all the liens by Date, he cannot deliver good title, is in default and has to refund every penny of your earnest money and/or down payment. If your contract was properly written with penalties for default, you would get more money than that to compensate you for your cost of your lost opportunity and damages. But if you did not use a real estate attorney, such a penalty clause might not be in your contract. If you back out of the contract before closing date without just cause under the contract, you are in default. Then you lose your money, and may have to pay penalties for defaulting. You are likely stuck until closing date before you know which end is up. READ your contract again! Make offers on another property contingent on resolving the issue of the currently contracted property by Date. Such a contingent offer is unusual, but legal if you do it properly. Chances are, however, that you can kiss this deal and the $8k tax incentive good-bye. You've made too many beginners' bonehead errors in not checking things out, not getting an attorney, not ensuring you were protected from certain eventualities, etc.

by ibu guru- 1 month ago

"Expires November 12th." Does that mean that escrow is to close on November 12th? Or, in other words, seller must convey the property to you by Nov. 12th (and likewise you must pay by Nov. 12th?) Well, there's really not much you can do until Nov. 12th. He still has a couple of weeks to do what he needs to do to clear the title. If he does not have the liens removed by Nov. 12th, you can "cancel" at that time and sue for damages. And yes, if you cancel now, you would be presumed to be in breach of contract. To overcome that presumption (and get your deposit back) you would need to prove to the arbitrator (presuming your contract requires arbitration) that there was no way the seller would have been able to convey marketable title to you by Nov. 12th. In other words, if you cancel now, whether you get your deposit back will essentially be determined by a spin of the roulette wheel.

by Mr Placid- 1 month ago

What will most likely happen is the home that you put an offer in on will go to foreclosure. Depending on the liens and who holds the first lien on the property, the seller will either have to perform a short sale, declare bankruptcy or let the home foreclose. I would go back to your contract and check all the fine print, depending on state laws and the contract itself, you may be able to rescind the contract at any time, definately get with your agent and find out the facts, if you do not have one, check your network and see if you can get in touch with one. Worst case is you may have to wait for the closing date to come and go, but I would also speak with your agent or contact to see what it would take to place an offer on another home

by Big daddy- 1 month ago

400k in LIENS? - RUN AWAY FAST!!!!!!!! no way you will be able to get clear title with all those liens - and if the the seller doesn't have that much equity in the house - it will be impossible for him to pay them off too If the title search turned up these liens and the seller didn't disclose them, I would say you should be able to get out of the deal - ask your RE agent

by Doctor Deth- 1 month ago