I was in negotiation to buy a home that has been abandoned for around 3 years. With the helpful push of some members on here, I went through with the contract signing and sending it to a title company. After 5 days of high anticipation (first rehab) I receive a call from the closing agent stating the contract is void because the owner has a mortgage around 40k.
He never told me this and came off as though he completely owned the property. Thank goodness for the closing agent! My issue is this, I still want to purchase the house but in no wag want his mortgage. The repair value alone looks to be around 30k and location is in a 50-80k neighborhood.
Is there anything I can do to continue this deal without the mortgage issue?
Should I let this go and search for a new location?
Any other options??
Unless the seller is willing to bring funds to the table to make up the difference then no, there is no way to get rid of the mortgage unless you decide to pay more for the home.
Might walk on this one.
@Curt Davis thank you for the input. Do you mean he would have to pay the difference of my offer? Seems like this would be a deal I have to give up on
This really shouldn't be a surprise. You can go on your county Clerk of Court site, Official Records search, and find any mortgages in the owner's name, in about 5 minutes.
@Wayne Brooks I searched the appraisal site when it was in search for the owner. When I saw his name listed, I thought he owned up completely- rookie mistake. I did find a small lien but had no problem dealing with that. This experience did teach me valuable lessons, big on the plural hahaha
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing