Accountant · Miami, FL · Member since 2017 · 144 posts · 54 votes
I have a house that I am interested in and the outstanding liens are currently around 10K.
Is it possible to have the escrow setup in which the liens are taken out of the sale of the House?
Or would the owner have to take care of the liens before I could purchase with an FHA loan?
Let's assume both options are not possible can I pay the lien myself and have the seller contract the house to only sell to me (obv this would be taken out of the sales price).
@Elvis Vasquez the liens are paid by the seller with some of the money that you pay them for the house. This happens at the closing table. You will not take ownership unless the liens are cleared. I hope that helps.
@Elvis Vasquez the liens are paid by the seller with some of the money that you pay them for the house. This happens at the closing table. You will not take ownership unless the liens are cleared. I hope that helps.
how exactly should I go about this? Assuming the property appraises how exactly would I know if my mortgage lender would allow the liens to be paid off at closing instead of being cleared before hand?
he also didn't pay 3 years of taxes (thankfully its not a tax-deed sale yet...)
I have an attorney on retainer so I would assume I would need alot of stipulations to this sales contract if I decide to go through with it however..... long-term wise he would be judgement proof and all those liens (including mine) would disappear (with the exception of municipality liens and taxes) if it goes to a tax-deed sale.
Its a great deal if I can pull it off but its extremely risky...
@Elvis Vasquez This is how it usually works. You and your bank are business partners in this deal. You should probably get a real estate agent to write the contract for you. They will ensure that you do not get screwed, so it's worth paying them for the service. Take the contract to the lender. The lender will order an appraisal. If it is a bad deal, they will not let you do it. If they agree to finance the deal, then you are safe. A closing attorney will also be needed to make sure the deed is clear of any and all liens, including back taxes. Back taxes must be paid by either you or the seller before the deal can be completed. In summary, your team is a real estate agent, a lender (bank), an appraiser, and a real estate attorney. With this team, you will win. Without it, you are walking alone in the dark. Good luck.
@Elvis Vasquez This is how it usually works. You and your bank are business partners in this deal. You should probably get a real estate agent to write the contract for you. They will ensure that you do not get screwed, so it's worth paying them for the service. Take the contract to the lender. The lender will order an appraisal. If it is a bad deal, they will not let you do it. If they agree to finance the deal, then you are safe. A closing attorney will also be needed to make sure the deed is clear of any and all liens, including back taxes. Back taxes must be paid by either you or the seller before the deal can be completed. In summary, your team is a real estate agent, a lender (bank), an appraiser, and a real estate attorney. With this team, you will win. Without it, you are walking alone in the dark. Good luck.
thank you for your feedback.
I'll update this thread and see how it goes. more than likely I won't go through with this deal... too risky with no enforceable contract due to the impending tax-deed sale.
@Elvis Vasquez It depends on how much it is worth vs how much it takes to buy it. If you can buy it with a lot of equity, then it may be worth it. It isn't risky if you pay the back taxes or settle them with the county. Talk to an experienced real estate agent.