Buying Home with Title Issues

**griceok** · 12-13-2007, 02:04 PM

2 days before closing we found out the home we are purchasing has title issues. Our target date was 11/30 and the contract said the owner has 30 days to clear title. The owner agreed to let us do an early occupancy (as we closed on our sell the same day) at no cost for 2 weeks and assured us this would be cleared up by then.
What I have found out is, apparently the owner had filed bankruptcy at some point and from what they are telling me is that all the liens on the propery have been settled they just now have to be released. I spoke with the owners attorney and he said they legally have to release the liens but he has to file for release and this could be 25-30 days. I then told the owner that I am willing to pay something to stay in the house but not his full mortgage with interest and taxes where I won't be able to receive any of the benefits. They seem to be understanding as they have already moved and don't want to loose the deal and I want to close. However, there will come a point that I am going to have to be assured this will close or start looking for another home. We have moved in but definatley not settled in,
To complicate things more, a week after we moved in we had a major ice store and I woke up to find water running down the walls. After investigation I found out it was caused by an ice dam and was able to clear it up but the sheet rock got wet and the carpet was soaked. (Actually a good thing for the owner that I was there). My realtor is not happy with the entire situation (and neither is the office broker) and said the owner is responsible for fixing the roof issues as well.
Overall I am in the home I want but am not comfortable settling in. Any thoughts on how long these things can drag on or recommendations???

**Sparks** · 12-18-2007, 10:03 PM

WOW! Did you sign a lease when you moved in? I hope so. As far as the roof issue the owner should cover it or his insurance should cover it. He does still have it insured doesn't he? My advise would be to contact an attorney yesterday.

**griceok** · 12-18-2007, 10:13 PM

I did not sign a lease. We did sign an early occupancy agreement (and just updated to allow me to stay in the house 30 days at no cost until close). As of now, I don't see a big risk on my part. Worse case is I find another place to live and all I loose are my inspection fees.

I am told now that there is a chance this will close before the end of the month but could be 1 week longer.