WHEN IS A TITLE SEARCH DONE FOR A SHORT SALE WITH FHA, AND IS THERE SOME TYPE OF PROCEEDOR THAT IS DONE? IF SOMETHING WRONG WAS DONE WHO IS LIABABLE FOR THIS MIX UP.

 

I am in the process of buying a short sale home and have had the inspection done along with the appraisel which i paid for both out of my pocket, only to be told 2 weeks before closing thst there is a tax lien on the property.

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Its the title company's responsibility, they are the ones that search for liens. Now, it could of been that they had pulled title a long time ago and then the buyers agent didnt have them pull title again for a while, or it was just back luck in timing and just got recorded. It ifs a state tax lien then some states negotiate a partial release for payment arrangements. If its property taxes, have the bank approve the final HUD.
Roland, How much is the tax lien for? Is it a property tax lien or an IRS lien?
A Title search should be done on ALL short sales when the process is started because if not these things will come back to bite you.
Every short sale I start the title is done in the beginning in the middle and when the lender counters I get an updated one done so I know what is on title and so to avoid surprises...

So far I have been lucky, then again you can always have a lien filed against the title right after you get an approval,
but that can happen on any property rather short sale or regular sale...

Jim

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