Buying House & Land w/ Lien

[jennypenny2008]

What is the name of your state (only U.S. law)? Tx

My fiance & I are first home buyers and we fell in love with this homey 7 acre 2/2/3 w/ pond, pool, guest house for 126K totally enclosed with trees built in 2005. The seller asked us to write up the contract and we let them have it, and they signed. However, we asked afterward if there was any lien on the property. They said yes in the 70K-70K range of lien for the construction of the newer house. They seem like good, honest people when we met them, and so far have been truthful, however, we are hesitant to close because of the lien. Is there any document or anything we can do to protect ourselves from being foreclosed and completely screwed over if somehow they miss a payment for the lien?What is the name of your state (only U.S. law)?

 

[jennypenny2008]

Left off important info

The seller is also owner financing to us, 1,000 a month payment 6% interest

 

[TheGeekess]

DO NOT buy a house with anyone you are not married to. Read these forums for the horror stories of those who have bought houses with fiancés, fianceés, partners, significant others, boyfriends, girlfriends.... Then when the breakup happens.... It is not pretty.

 

[HomeGuru]

What is the name of your state (only U.S. law)? Tx

My fiance & I are first home buyers and we fell in love with this homey 7 acre 2/2/3 w/ pond, pool, guest house for 126K totally enclosed with trees built in 2005. The seller asked us to write up the contract and we let them have it, and they signed. However, we asked afterward if there was any lien on the property. They said yes in the 70K-70K range of lien for the construction of the newer house. They seem like good, honest people when we met them, and so far have been truthful, however, we are hesitant to close because of the lien. Is there any document or anything we can do to protect ourselves from being foreclosed and completely screwed over if somehow they miss a payment for the lien?What is the name of your state (only U.S. law)?

**A: did you review the title report, seller disclosure statement, home inspection report, mortgage documents etc****************************...

 

[FlyingRon]

You do understand that unless they pay off the lien, you will be stuck with it?

I am also highly suspect that if they have a construction lien and the property was only built a few years ago that they also have a MORTGAGE on the property. In fact, this isn't owner financing, but they are wrapping the loan. It's highly risky. If they stop making payments, the bank will foreclose and you'll lose everything you've put into the deal. If the bank notices the change in title or insurance, they may call the loan as well. The result for you will be the same.

The proper way to do this is to get free and clear title, finance it via legitimate means, and get OWNER'S TITLE INSURANCE.

 

[nextwife]

I also suggest you use a RE attorney, review an as-built survey for compliance with setbacks, easements and right of ways, verify that proper permits and inspections were obtained and that an occupancy permit was issued.

And test the well and septic.