Closing on an investment property

svt1998gt · 09-13-2019, 02:49 AM

wanted to seek some advise from some real estate experts.

i have been closing on a property for the last 5 months, reason is because the seller went into short sale right when my offer was accepted. after a few months and the bank finally accepting our offer. the seller is past due on his HOA payments. the listing agent asking my agent if we would cover the 6k, and i said I would not, given the time and opportunity cost i have already went through in working with the seller in making this short sale addendum for him.

Is there any legal action I can leverage? my closing is on tuesday thr 17th

Mardio · 09-13-2019, 08:02 AM

My questions would be did you receive a seller disclosure statement during your initial offer? Is this a residential sale? Or commercial? If it's residential the seller must disclose any liens or financial burdens that are attached to the property in this statement (including past HOA debts). The seller could be exempt from a seller disclosure statement if this is a bankruptcy sale.
Another question would be did you receive a preliminary title report? If so did the past dues show up on it?

MKSixer · 09-13-2019, 03:08 PM

Quote:

Originally Posted by Mardio

My questions would be did you receive a seller disclosure statement during your initial offer? Is this a residential sale? Or commercial? If it's residential the seller must disclose any liens or financial burdens that are attached to the property in this statement (including past HOA debts). The seller could be exempt from a seller disclosure statement if this is a bankruptcy sale.
Another question would be did you receive a preliminary title report? If so did the past dues show up on it?

This and get a real estate attorney if you don't already have one. I purchased the home my ex-wife has in a similar situation. The back fees weren't disclosed so I didn't have to pay them. Simple.

chassis · 09-13-2019, 07:20 PM

Lawyer time, get some advice.

F32Fleet · 09-13-2019, 10:41 PM

It's not your problem. All liens must be paid off and it's on the seller to make it happen. It comes out of their proceeds. Tough luck for the current mortgage holder. Be prepared to walk.

svt1998gt · 09-24-2019, 01:34 AM

sorry for going dark, its been busy.

i think we have this settled, looks like title company was doing its job, also title insurance should cover these issues.

basically hoa voted to allow for the shortage and the local city security service approved the same as well.

i should be in the clear. its been a long process and i am ready to get this going.

svt1998gt · 10-06-2019, 02:10 PM

we got it closed took alot longer but it was time invested. the property appreciated a good amount in the 6 month wait.

positiveions · 10-13-2019, 05:36 AM

OP, my friend and his wife went through that process and it was a nightmare. His words “run away when you see a short sale”. Just when he thought he almost had the house, the deal went from good to bad to sour.
But congrats to you.

09-13-2019, 02:49 AM	#1
svt1998gt Second Lieutenant 76 Rep 212 Posts Drives: 2008 e90 335i, 2012 X5 M spor Join Date: Aug 2013 Location: Texas iTrader: (0) Garage List 2012 BMW 550i M Sport [0.00] 2008 BMW 335i [0.00] 2012 BMW X5 M Sport [0.00]	Closing on an investment property wanted to seek some advise from some real estate experts. i have been closing on a property for the last 5 months, reason is because the seller went into short sale right when my offer was accepted. after a few months and the bank finally accepting our offer. the seller is past due on his HOA payments. the listing agent asking my agent if we would cover the 6k, and i said I would not, given the time and opportunity cost i have already went through in working with the seller in making this short sale addendum for him. Is there any legal action I can leverage? my closing is on tuesday thr 17th
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09-13-2019, 08:02 AM	#2
Mardio Brigadier General 197 Rep 3,211 Posts Drives: 2017 X5 Join Date: Jun 2006 Location: Nashville iTrader: (0)	My questions would be did you receive a seller disclosure statement during your initial offer? Is this a residential sale? Or commercial? If it's residential the seller must disclose any liens or financial burdens that are attached to the property in this statement (including past HOA debts). The seller could be exempt from a seller disclosure statement if this is a bankruptcy sale. Another question would be did you receive a preliminary title report? If so did the past dues show up on it?
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09-13-2019, 07:20 PM	#4
chassis Colonel 8084 Rep 2,507 Posts Drives: 9Y0 Cayenne S Join Date: Mar 2019 Location: Einbahnstraße iTrader: (0) Garage List 2020 Porsche Cayenne S [7.69]	Lawyer time, get some advice.
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09-13-2019, 10:41 PM	#5
F32Fleet Lieutenant General 3908 Rep 10,606 Posts Drives: 2015 435i Join Date: May 2005 Location: Southeastern US iTrader: (0)	It's not your problem. All liens must be paid off and it's on the seller to make it happen. It comes out of their proceeds. Tough luck for the current mortgage holder. Be prepared to walk. __________________ "Drive more, worry less. " 435i, MPPK, MPE, M-Sport Line
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09-24-2019, 01:34 AM	#6
svt1998gt Second Lieutenant 76 Rep 212 Posts Drives: 2008 e90 335i, 2012 X5 M spor Join Date: Aug 2013 Location: Texas iTrader: (0) Garage List 2012 BMW 550i M Sport [0.00] 2008 BMW 335i [0.00] 2012 BMW X5 M Sport [0.00]	sorry for going dark, its been busy. i think we have this settled, looks like title company was doing its job, also title insurance should cover these issues. basically hoa voted to allow for the shortage and the local city security service approved the same as well. i should be in the clear. its been a long process and i am ready to get this going.
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10-06-2019, 02:10 PM	#7
svt1998gt Second Lieutenant 76 Rep 212 Posts Drives: 2008 e90 335i, 2012 X5 M spor Join Date: Aug 2013 Location: Texas iTrader: (0) Garage List 2012 BMW 550i M Sport [0.00] 2008 BMW 335i [0.00] 2012 BMW X5 M Sport [0.00]	we got it closed took alot longer but it was time invested. the property appreciated a good amount in the 6 month wait.
	Appreciate 1

10-13-2019, 05:36 AM	#8
positiveions Lieutenant General 976 Rep 11,725 Posts Drives: 19 Tacoma, 16 Golf wagon Join Date: Sep 2007 Location: Upland, CA iTrader: (2) Garage List 2019 Toyota Tacoma [0.00] 2016 VW Golf Sports ... [0.00] 1998 BMW M3 [0.00] 1990 BMW 325is [0.00]	OP, my friend and his wife went through that process and it was a nightmare. His words “run away when you see a short sale”. Just when he thought he almost had the house, the deal went from good to bad to sour. But congrats to you.
	Appreciate 0