is it really as hard as it sounds? i wil be buying from the company that bought the property from the owner, He still lives there, should I be concerned? what precautions do I need to take? will I be responsible for any outstanding debt? HELP ME
2006-12-28 13:28:25 · 7 answers · asked by olga91 2 in Business & Finance ➔ Renting & Real Estate
I'm a 1st time home buyer, and I did not know this was a short-sale. I do have a real estate agent. The owner transfered or sold the property-debt to an independent financial Co. who took care of everything with the Bank. The owner still lives there, do I really need an attorney or can I be guided thru the process by my Real E. A. whom by the way is my relative, (meaning that he is not hidingt anything from me). Or should I pass on this? I've made an offer and it was accepted so I will pay for a house inspection. My main concern is that I do not wish to be held responsible for any liens or debts... Advices please. Thank you!
2006-12-28 13:45:47 · update #1
I believe you will owe outstanding taxes and etc, I'd talk with a laywer before signing any paperwork to make sure you're aware of everything.
2006-12-28 13:36:20 · answer #1 · answered by singledad 7 · 0⤊ 0⤋
I'm very experienced in this set-up. It will all depend on how the deal was constructed between the owner and the company as to what you have to watch out for. Some companies purchase the note while acquiring title at the same time, some are just middle men who flip the house without using any of their own money by doing a double closing, and some just have title.
Pull title and if title shows the owner, then use a real estate agent to conduct the short sale with the owner and the lender. This company won't have a leg to stand on unless they want to come up with all the cash to carryout the purchase and control of this home.
Regards
2006-12-31 00:34:20 · answer #2 · answered by Anonymous · 1⤊ 0⤋
Something definitely sounds fishy. A short sale is usually only agreed to by the seller's lender if the seller is behind in payments and is otherwise going to be foreclosed upon. If some "company" bought the house from him, there is no longer the foreclosure looming overhead.
Also, at least in Texas, if a Realtor lists a house and is trying to get the lender to allow a short sale, it must be disclosed to the buyer before the contract is accepted. A lender may take you all the way to closing and then say that the net to them is too low - bring more money or we'll just foreclose. The buyer deserves to know this going in, before they spend money on inspections, appraisal, etc.
The potential for eviction later is also a problem. Be sure that possession is at closing - means you'll close only on an empty house, not one with a tenant in it.
2006-12-31 01:25:19 · answer #3 · answered by teran_realtor 7 · 0⤊ 0⤋
HIs presense is weird. Skip over your agent and work directly with the broker.
The short sale simply means that they are selling it for less then is owed on it. No other liens, etc come with the sale. The loss is taken by the bank, not the buyer.
Your real concern is getting the guy in there out. You may have to officallly evict him, which is why going thru a broker (still free to you) is a better option then a real estate agent. If you are really adament about an agent, make sure they are a Realtor, which is actually a title and puts them a cut above your average agent (anyone could pass the agent test, doesn't mean much).
2006-12-28 22:00:24 · answer #4 · answered by Anonymous · 0⤊ 1⤋
Based on the information provided:
If the original owner is still living there after having sold the home to another party, the second party is obviously allowing him to stay there. I would want to make sure that ownership actually transferred from the first owner to the second.
Assuming that the ownership did properly transfer, I would discuss that status of the "Tenant" in the property. Is there a signed lease? Are they just letting him stay there until the house is sold? You need to find out more information about this.
If the ownership did not transfer to the second "owner", I would be leary. The first owner has contracted with the second "owner" to sell the house for him to keep it from being foreclosed on. Depending on what their arrangement is, the first owner might balk on the deal and back out, leaving you without a house and possibly out of money.
Bottom line, get a Realtor or lawyer involved to protect yourself.
2006-12-28 21:39:07 · answer #5 · answered by txrealestateagent 3 · 0⤊ 0⤋
The sale needs to be contingent upon the resident leaving. I would definitely use an attorney to assist me with the closing. This is not the kind of deal an amateur should be doing alone.
2006-12-28 21:36:53 · answer #6 · answered by KC 4 · 0⤊ 0⤋
You should really spend the $150.00 and talk to a lawyer, once you sign a contract you can't plead ignorance if something goes really bad. Good luck.
2006-12-28 21:37:34 · answer #7 · answered by Anonymous · 0⤊ 0⤋