have the right to know how many liens on the seller's property? My agent says no, but everything I read seems to indicate otherwise.

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Usually in most states property is going to be passed to you free and clear of any liens in order to get title insurance. If the Seller is giving or you are receiving title insurance there really isn't a need to know what liens are in place as they do not pertain to you. When title passes to you with insurance it will not pass unless they are cleared. So it really is a moot point.
Thanks Krystal. The reason I want to know is that I am trying to assess the liklihood of my short sale going through in a reasonable amount of time.  Apparently, more than one lien affects the short sale process considerably. 
Of course you do, your agent is totally wrong. Just go down to the county courthouse and pull title (public record). You will see the liens and the amount.

Bob is right,

 

you want to know because it shows what your chances of a successful closing are, and it's a matter of public record. If your agent is too lazy/incompetent/whatever to pull this simple information, find another.

That information should be listed on the short sale addendum required to be signed by the buyer and seller on NJ short sale contracts.  The addendum is required!!!

Thank you Bob/Laura/Jim,

 

You have given me much insight! The agent happens to be the friend of a friend kind of thing.  I love her dearly, but don't think she handles/or has handled many short sales.  Laura,  I do have a copy of the offer agreement and an addendum that I signed, but the only thing the addendum said was that it was adjusting the date (and that we would go to close by Jan 31 (what a freakin joke that was, the addendum said "YOU ARE IMMEDIATELY BOUND BY THE TERMS OF THE AGREEMENT BY SIGNING".....of course we were the only party's signature that we saw, so I guess it's not a contract until the seller (bank) signs.....

Anyway, I think ours is one of the tougher ones because A) this is a resort town(second homes) B) their is a bankruptcy atty involved for the seller (and they seem to be part of the problem) Everyone knows atty's make more money, the more they do, so sure they're not in a freakin hurry!!! 

Sounds like a lot of problems.  I do short sales at the Jersey Shore, many are second homes, so that in and of itself shouldn't be a big deal.  If the seller is in bankruptcy court that's a problem.  If it's not discharged, you have to get a special order by the trustee to allow the sale.

The contract addendum, required in NJ, must have the everybody that's owed money on the house and the general amount owed.  You can get a copy of the approved addendum at njar.com, in the online forms section.

Good Luck!

Laura 

 

Thanks so much Laura! I did look at njar.com, it appears I need to be a member.  I wasn't sure what to do after I clicked on :online forms, but again it seems I need to be a realtor.  Thanks!!

Hi Sharon,

Yes, you have the right to know.  I'm a New Jersey realtor and I do lots of short sales.  The short sale addendum we sign in Burlington and Camden County for all short sales clearly outlines the liens on the property.  You probably know this, but all liens will be satisfied as a result of the short sale and you will not be responsible for any of the liens on the property.  That being said, there ARE occasions when one of the lien holders may not want to release the lien for the price that was offered to them.  You, as the buyer, are free to offer to pay off that lien if the price you're getting for the house is good enough that a few thousand more dollars won't stand in the way of you buying the property.

 

Hope that helps,

 

Valerie Pressley

Short Sale and Foreclosure Resource

Keller Willimas Realty

Hi Sharon,  

I am a New Jersey agent who does a lot of short sales, as well.  New Jersey agents really can't advise you since you have an agent, however we can provide you with general info.

 

 If I act as a buyer's agent the first thing I do it find out how many liens and who is negotiating the short sale for the seller.  Multiple liens do slow down the process

 

As a listing agent on a short sale, I require the Short Sale Addendum (as far as I know it is not required by law).  I actually edit the standard one a little.

 

You can have your title company run a property search or current owner search on the property to see what liens are on it.  Since you will be using them for your purchase, they will probably do this at no charge.  

 

It is really in everyone's best interest to have a fully informed, comfortable, committed buyer who will hang in until approvals and closing.

 

Attached is the modified short sale contract addendum that I require.  It should be filled out by the seller first with the lien holders and amounts and if they are in default or not.

 

Tracy Gibson

Attachments:
Hi Sharon: You wrote: <...not a contract until the seller (bank) signs.>>>  The bank is not the seller in a short sale, they are not a party to the contract and won't be signing.  If the bank is signing the contract this is a bank owned REO foreclosure, not a short sale.
Nothing is binding in NJ for three days (check with an attorney, since I am not one).
Tracy

sharon herling said:

......... "YOU ARE IMMEDIATELY BOUND BY THE TERMS OF THE AGREEMENT BY SIGNING".....of course we were the only party's signature that we saw, so I guess it's not a contract until the seller (bank) signs.....

 

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