AboutDennis Herman Expertise I can answer questions on Real Estate such as question on writing an Offer to Purchase. What can go wrong after an offer is written? What is Buyer Agency and what will it do for me? What is a foreclosure? What is the difference between a foreclosure, a bank owned property and a short sale? What is the best way to locate a property? What steps can be taken to avoid foreclosure? How do Real Estate Agents get paid? How can I quickly build equity in a home? How do I view homes? What types of homes will have the best prices? How do I choose an agent? What types of financing are available?
Experience Residential and commercial real estate. New home purchases. Buyer Agency. First time home buyers. Foreclosures, bank owned properties, estate sales and short sales.
Organizations Greater Milwaukee Realtors Association
Wisconsin Realtors Association
National Association of Realtors
Publications http://activerain.com/bloghome
Education/Credentials State of Wisconsin Licensed Real Estate Sales Agent
Accredited Buyer Agency Training
Relocation Training
Certified Senior Citizen Representative
Wisconsin Real Estate Continuing Education
Question Three months ago I placed a bid on a Bank Owned property and lost. I live 2 doors down from this property. Approx. 90 days went by and the house goes back on the market again. I make another offer at $92000.00 and offer to pay closing. They came back with 90,000K and wanted to close by the 19th of Aug. I agreed and signed on July 6, 2009. My loan agent calls me to let me know that there is a Lien on the property. Prior owner was sent to jail and it left a $150,000 lien against the property. The listing agent said she told my realitor that there was a lien and he declines knowing anything about it. Now they want me to extend the contract on the purchase. They still don't know when it will be resolved. Initially they said 7-10 days 3 days after I signed the offer and gave them my earnest money...and paid for the appraisal of $400.00. They are saying that the original Title Co. cleared the title and the one the assest company is using found the lien. It is has been 6 weeks now the contract runs out one the 19th. I feel as though the bank knew this and this is why it originally didn't sell.
Do you think that this is failure to disclose?
Should I renew the contract? How long can it take to clear the title? I am a first time buyer and this has not been a great process for me. I feel as though I have been given the run around. There isn't any direct answers etc. What is your opinion on this situation?
Answer I am not an attorney, I am licensed to market real estate. But I can tell you what I would do if I were in your position.
Sorry for the delay, I am in the process of moving this week.
You say this is a bank owned property. In the state of Wisconsin, a title must be cleared of all liens before it can be transferred. As far as I know, this includes a transfer from the owner to the bank. If that is the case I would demand answers. How did this property go through a previous title search without this showing up? When was these liens added to the property?
You can demand a copy of the title. This will show you a list of all the liens/loans, amounts, dates, everything you need to know. In Wisconsin the buyer is to receive a copy of the title before the closing.
If the bank (seller) is having trouble with the title they can ask you to extend the closing date. This can be done on an amendment.
Do you have an agent representing you or did you write the offer with the agent listing the property? This is a very common mistake. An agent should make it very clear, they represent the seller. If they did not explain this, you may want to file a complaint with the local board of Realtors.
This may be an example of a rear case of loan fraud. The original owner may have taken out a loan against the property before the bank took control. This is very rare and should not happen. Both the owner and the lender are breaking the law and this may be why the original owner is in prison. In Wisconsin, Title Gap Insurance is offered to protect against this problem. If the bank asks to extend the the closing you may want to also amend the contract and ask the bank to provide a GAP ENDORSEMENT to the title. This covers the period of time between the date the seller's title is ordered and your (the buyer) title insurance begins, on the day of closing. This GAP may be 3-5 days. The Gap Endorsement covers this period of time and protects you the buyer.
I hope this helps. You are in one of those rare situations.
