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08-27-2009, 07:24 AM #1
Renter
- Join Date
- Jul 2009
- Location
- New Haven, CT
- Posts
- 4
Title Issues
I need help on some title/preforeclosure issues. My company is in the middle of wholesaling a rehab property. One of our buyers who went to see the property told us that the property was boarded up and they could not get in. We went by and saw that the locks were changed, the back door was boarded, and there was a sign on the door saying the house was winterized by a random company. We have the property under an option contract to buy. We did some research and saw that the seller was in foreclosure. We called the seller, who claimed to know nothing about this. We did not know there was a mortgage or any liens on the property as we were told by the seller. There turns out to be several builders' liens and a blanket mortgage that covers the property we are trying to wholesale, the seller's house, and another investment property owned by the seller. This mortgage is with a private lender. The seller will not give us the name of the private lender to discuss the situation, as he claims it is a friend of his who lent him money for several projects. The seller only told us that this isn't a problem, once the first holder is paid off all of the other liens will be dropped, and that this is common in real estate. We do not have any experience with title issues and we want to protect our buyers to make sure that if they go through with this wholesale, they are getting the property free and clear of all liens and encumbrances. Has anyone ever dealt with a situation like this? Any advice?



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