All Forum Posts by: Ezra Nugroho

I think the way it is, the title is not really marketable because the total liens are quite a bit larger than the purchase price, and they don't have enough to cover the difference.

We don't know for sure how the second lien came about. I heard that it had to do with some loan modification that they did. We've got no details.

I will keep you guys posted.

My agent went over the purchase agreement and informed me about a clause that addresses the issue around 'seller not able to provide good and marketable title that is insurable by a reputable title insurance'. In witch, the seller agreed 'to reimburse the buyer any costs incurred for inspections or certifications obtained according to this agreement'

I think we have some ammo to get my costs back!

Lesson 1: Do a prelim title search.

Lesson 2: Make sure the purchase agreements have adequate default clauses. 

Hi all,

Thanks for the replies. I am in the West Coast, and I did assume that the title would have been clean. The listing agent is an older gentleman and does seemed experienced. But you'd never know what actually happened. The property was in the market for a long time because they had it at a much higher price. Not sure if the second lien was created after it was listed. 

But we should know now, get a prelim check before submitting an offer.

@Mary B. thanks for your reply. this property is in a great condition, and it was indeed supposed to be a buy and hold. The second lien is indeed quite large, they owe much more than the purchase pice.

I never actually sue to force settlement. They just don't have the means to cover the liens. If anything, I was thinking of just asking them politely or taking them to small claims. It's not the end of the world, I may loose about $1200 and change. But It's no fun to loose money on a deal that could not be completed.

Hi BP.

Tomorrow I was supposed to close on a property, which we are now not going to. During the title search, we discovered a sizable second lien that they didn't disclose. When we mentioned the fact, they acted surprised. Can't say genuine or not.

Today they sent us a release of contract document, stating that they will send me my earnest deposit back. I am sure that they will do that, but I have put some money in for inspections and appraisal. Do you think it's possible to ask the seller for that back?

Anyone has ever had similar experience before?

I feel wanting to go to Detroit just to check it out myself. 

@Sheryl Griffin Thanks for your response.

For solo 401K, is the contribution limited up-to the income that you generate from self-employment of business? What if the business is not producing, or actually generating a loss? 

Thanks for your post. The article has a similar somber tone like what we've been hearing lately.

Since the run up in 2013 was quite significant, maybe we are just generally out of fuel. Interest rate is still very low, and a few days ago we learned that FNMA is starting to buy 97% LTV loans again. So the government is probably seeing the slowdown as well, and trying to push it forward.

David, In terms of general local economy, what do you see over there in Central PA? 

Here in Bay Area, economy seems to be quite healthy still. Startups are still getting funded left and right. Most consumer market startups are gravitating in San Francisco area, instead of in the traditionally known Silicon Valley cities. That explain the crazy increase of home price and rent over there.

BP-ers, How's your local economy look like?

@Albert Bui I probably misunderstood, but I thought that FNMA used to allow 10, and has  reduced that to 4.

In general looser lending policy is probably good for investors initially, but it may eventually pushes valuations towards a bubble.

@Kevin Auyong where are you going to shop at?