Hi guys my name is colin and i live in south florida. My fiance and i are looking to buy our first home thats listed on home search. We did our due diligence and had an inspection done as well as a title search by a lawyer friend of ours. Inspection came out great. However, the home has an hoa lien on it filed in 2013 for 15k. My lawyer said because the bank took ownwership in lieu of forclosure that the lien does not get wiped away.
The home search auction and bank provides a special warranty deed. Now since the bank took posseion in 2012 and the lien was filed in 2013 would the bank pay it off prior to closing? Evereyone i spoke with says they pay it most of the time. The listing agent said we will be provided clean title. Green light loans who advertise loans for home search auctions (who we are not going with) also says we get clean title. Its just my lawyer says we are at worst joint and severably responible if they dont pay.( have to pay half) I spoke with the hoa. They said worst case if the bank does not pay submit and offer to pay off the lien. We need clear title for our loan to work.
Has anyone had homesearch pay off a lien or any other auction company do the same? From what evereyone is telling me they "should and usually do" but my lawyer says they dont have to.
Let me know if any of you have advice for us as this will be out first home purchase and if we get it for the right price it will be a great deal.
Also if you have any info on green light loans as i read horror stories about them but they claim to have more leverage (able to get liens paid, no appraisal fee, get bank to fix things that come up during apprasial etc) since nation star owns them, home search and has some stake in the property. Its owned by bank of mellon and service by BOA.
I closed on a property with homesearch.com two weeks ago and it went very smooth from my end. There wasn't a HOA lien but there were back HOA fees due. The seller settled the full tab at closing so I wasn't stuck with the bill. Hopefully someone will have a more solid answer for you but overall I was happy with the transaction. Good luck!
Thanks for your response. I am glad to hear your purchase went smoothe. So they handled the pay off at closing? I am just wondering how they would do that with a lien. As it needs to be paid before we can get a loan. Out of curiosity and if you dont mind. Did you get to the reserve price? and did you get a loan? And was it a special warranty deed?
This is all new to me. Home buying in general and with home searches one sided contract we are at their mercy. But i really appreciate the insight.
I have purchased properties from HomeSearch and if the property is vacant and title is transferd via a special warranty deed, you will get clear title and seller will take care of all outstanding HOA dues.. If property is occupied which does not seem to be the case here, then seller transfers title via quitclaim deed and you are responsible for everything.. This is truly sold as-is, where is.
Sorry, no experience with greenlight loans but depending on the market activity of the listing and how far off from the reserve price you are, they often do go with the highest bidder.. It's a hit or miss but definately worth a shot if the price is right.. Locally, I have noticed that these auctions are going for HIGHER than the MLS which is simply crazy..
No idea what the reserve price was as it was never met. I posted my bidding experience here:
Paid cash and special warranty deed. They also offered us a $500 closing credit if we were ablet o closer early which wasn't advertised beforehand. Overall, it was a very good experience and I was surprised at how well it went.
Thanks guys. That gives me a little more confidence in bidding on this property. That 15k+ hoa lien is scary. If the seller did not pay that we would be stuck trying to pay it in cash to clear the title or we would loose our deposit since their are are no financing contingencies.
Hope it works out. Wish me luck! And thanks for your help.
I just want to let everyone know that we closed on the house. Over 15k in liens were paid by the bank that owned the property. They actually paid out over 30k at closing for various things. The house appraised for 40k over the purchase price as is. (It was missing all the appliances). Other then that its basically brand new and in perfect shape. It was built in 2005.
Who ever bought it paid the pre construction price and tried to flip it for more. That did not work so they rented if for a year or 2 and then abandoned it.
I think I did pretty good on my first home purchase.
Thanks to all who answered my questions!!!
That's awesome! Congrats and Good Luck
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