Closing woes in Missouri

[Nic S.]

I can’t tell if this is a good or bad omen. I was SUPPOSED to close on a property today - notary meeting was being scheduled.

I received an email from my lender stating “a document was recorded that will not allow us to move forward without further clarification”. Super weird, I call the sellers (a turnkey provider) they informed me there was an “intent to sue” against a sub-contractor which means the title of the property is no longer clean!

All properties this individual worked on are affected for an unknown amount of time. A cease and desist letter has been filed. To complicate further, the rate lock on my loan expires 10/18 - I think it’s $9/day to hold the rate - I’m not paying and I’ll have to ask the seller to pay - I want the property but this feels like a warning. What do you think?

[Jim Goebel]

@Nic S.

I haven't dealt with this before but without knowing status of title, you never know, which means I wouldn't close.  I'd trust the attorneys and title folks to protect you from stuff like that.  Your call on whether you'd wait it out.  The seller has some skin in the game to get it resolved, obviously....  Good luck.