U
/u/Competitive-Note6245
Guest
California.
I need some advice on a tricky home purchase situation. My partner and I are considering buying a house from a homeowner who is currently undergoing bankruptcy. The listed price was $870K. We initially offered $960K, but another buyer outbid us with an offer over $1M, waiving all contingencies. However, that buyer is backing out of escrow because he "couldn't wait for the seller to finalize some bankruptcy paperwork."
Here's where it gets concerning:
Our own realtor assures us that as long as the title transfers free and clear, the seller's bankruptcy and financial issues won't affect us. However, I'm worried about potential hidden problems or future liabilities.
When buying a house, do the existing liens or encumbrances come with it? My realtor says no, but I'm looking for confirmation and any additional insights.
Has anyone dealt with a similar situation? Is it true that the homeowner’s financial troubles won't impact us once the title is clear?
submitted by /u/Competitive-Note6245
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Concerns About Buying a Home from a Bankrupt Contractor with a Shady Business History
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I need some advice on a tricky home purchase situation. My partner and I are considering buying a house from a homeowner who is currently undergoing bankruptcy. The listed price was $870K. We initially offered $960K, but another buyer outbid us with an offer over $1M, waiving all contingencies. However, that buyer is backing out of escrow because he "couldn't wait for the seller to finalize some bankruptcy paperwork."
Here's where it gets concerning:
- If they had the financial capacity to bid so high and waive all contingencies, it seems odd that they wouldn't wait a bit longer. This makes me suspect there might be other issues with the property that scared them off.
- I looked up the homeowner. He is a roofing contractor with multiple 1 star Yelp reviews which all state that he has failed to pay suppliers, leading to mechanic's liens on his customers' homes. These customers, despite paying in full and some receiving lien waivers, are still being harassed by suppliers for unpaid bills. The contractor has been completely unresponsive to their attempts to resolve these issues.
Our own realtor assures us that as long as the title transfers free and clear, the seller's bankruptcy and financial issues won't affect us. However, I'm worried about potential hidden problems or future liabilities.
When buying a house, do the existing liens or encumbrances come with it? My realtor says no, but I'm looking for confirmation and any additional insights.
Has anyone dealt with a similar situation? Is it true that the homeowner’s financial troubles won't impact us once the title is clear?
submitted by /u/Competitive-Note6245
[link] [comments]
Concerns About Buying a Home from a Bankrupt Contractor with a Shady Business History
Continue reading...