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Foreclosure/REO property purchase questions.


We live in TN.

My in-laws are trying to purchase (with cash) a very nice 1900 sq foot triple-wide modular home on 2.11 acres, zoned A1. Permanent foundation. It was built in 1999.

The bank accepted their offer of 39K after haggling back and forth. (The home does need some TLC and is on well water). They are going through an online facilitator for this transaction. The earnest money - 1000K - was paid to JP Morgan Chase bank in TX and the closing date was set for September 16th,2013.

The facilitator contacted my in-laws yesterday and said there are two issues with the title and the closing will be postponed at least 30 days as the seller has reserved their right to extend the contract. They are working as quickly as possible to resolve the issues, etc. etc. etc.

First issue "property attachment certificate issue"
Second issue "senior lien title issue"

My questions are ...

What is a property attachment certificate ? Also, what is a senior lien ? Does this mean there was more than one loan on the property ? Is this all pretty common ??

According to the neighbor (who we talked to ourselves) this property has been through other auctions BEFORE it was listed with the present company....and nobody was buying -- he said he even tried to buy it (to rent it). He said the reason why it has not sold is because the persons who lived there before had 3 loans on the property so there were issues with the title and nobody wants to get involved with the hassle.

So, the in-laws are under contract, earnest money paid, and now these issues have cropped up. Is it the responsibility of the seller (JP Morgan) to get everything straightened out ?

What, if anything, should we personally be doing ?

This was going to be our home and we were going to fix it up really nice, build a barn, etc. Then sell our home that we currently live in to pay everything back to our in-laws and thus, eventually, be living mortgage free.

Now, I am just scared.


Hi Leah,

Those are all questions that I am not able to answer as the laws there are different then what I know. To understand what you are up against you should go talk to the title company that is handling it or go and talk to another title company and see what your options are. The property can't be sold unless it has clear title. The seller is responsible to provide clear title. IF they can't provide it the home will not be sold until they can. since it is a foreclosure, your in laws would have had to use a contract that the bank provides or an auction agreement that the bank approves of which allows them to back out of the contract without penalty if they cna't provide clear title. My advice to you is to talk to a title company in your area.

Hope that helps.



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Brian Pitcher


I can answer all questions in regards to short sales, strategic default, foreclosures, loan modifications, and most questions regarding real estate law.


I have closed well over 100 short sales in the past 3 years and that is the work we primarily do. We teach people how to keep their home if they can or how to bail on it in the best possible way without any recourse. I have taught many public seminars to accountants, loan mod counselors, attorney's and also many other real estate agents all over the country. I also know how to deal with the very tough second mortgages in the negotiations as well as mechanic liens and default judgements.

I have a bachelors in Spanish with a minor in Economics from the University of Utah. I have also been a Realtor for 8 years closing well over 200 transactions. I am a KW instructor for Short Sales and Foreclosures.

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