Expert: Lori Frankfort - 7/16/2008

Question
We are buying our first home in CA.  The home is bank owned REO.  When researching to make an offer my real estate agent stated the city had a lien on the title and without a title no lender will back a loan.  We have approval on a 203k loan which is for homes that need repairs. Is there a way around this, we really want this home?

Answer
The bank isn't going to be able to sell the home without a clean title... your agent needs to contact the bank and ask them if they intend to pay the lien.  If they don't, and you really want the house, write the deal so that the bank pays the lien up front so the title is clean and then you credit them back at the close of escrow.