Skip to content
Buying & Selling Real Estate

User Stats

50
Posts
21
Votes
Julia Fergo
  • Technical designer
  • Los Angeles, CA
21
Votes |
50
Posts

In escrow with preliminary Title, seller received letter of lien

Julia Fergo
  • Technical designer
  • Los Angeles, CA
Posted Sep 13 2015, 10:36

In escrow 15 days by now, towards 45 days close escrow. The property is in LA where I live,  the real estate agent represents both seller and buyer. I am done with inspection and forwarded request for repairs to the seller.This morning the agent calls me and informs that the seller received a letter about a lien from the lender and nobody knew about it. The house is in Trust on sellers mother name and the mother just passed away a month ago, and this why the house is for sale. the agent also complained about the reverse mortgage that somehow could be the reason for the lien...  she said it would take few days to figure what is going on. My question is what is a possible scenario? Also - could it be a way out of escrow because the agent mentioned there are 3 back up offers the property received already, my be more and here I am asking for repairs...:).

User Stats

688
Posts
606
Votes
Devan Mcclish
  • Investor
  • Nashville, TN
606
Votes |
688
Posts
Devan Mcclish
  • Investor
  • Nashville, TN
Replied Sep 13 2015, 10:49
No, they can't terminate because of a lien, you could as buyer. The lien would be subtracted from the sellers bottom line at closing. If they try to terminate because of a lien, sue for performance. But be careful asking for repairs, if I were the seller and I had 3 backup offers, I'd tell you no because I can easily put the next offer in first position

User Stats

50
Posts
21
Votes
Julia Fergo
  • Technical designer
  • Los Angeles, CA
21
Votes |
50
Posts
Julia Fergo
  • Technical designer
  • Los Angeles, CA
Replied Sep 13 2015, 11:12

@Devan Mcclish Thank you for your reassurance. What is the worst they can do regarding the request for repairs? Other than say 'no' or give me less than what I ask and let me deal with the decision? My though was I shall try and ask once I am in escrow. Because any next buyer will see what I see and they might have the same request form the next buyer..

BiggerPockets logo
BiggerPockets
|
Sponsored
Find an investor-friendly agent in your market TODAY Get matched with our network of trusted, local, investor friendly agents in under 2 minutes

User Stats

688
Posts
606
Votes
Devan Mcclish
  • Investor
  • Nashville, TN
606
Votes |
688
Posts
Devan Mcclish
  • Investor
  • Nashville, TN
Replied Sep 13 2015, 11:16

that is true, however as an agent I'd advise my clients to say no especially if the next 3 offers are better offers, which you don't know because they don't have to disclose that. The worst they can say is no. Then you have to make a decision to either continue or terminate the deal