All Forum Posts by: Leah Hill

Hello again, 

Thank you for the input. Unfortunately, we are purchasing a property in a new area with a new agent who does not seem to care whether we close this month on this property or in the future on another property, so we are not getting a lot of information from her. After we pushed back on the issue, she said that they actually have confirmed that the sellers have a recorded mortgage, instead of a deed of trust, so all we would actually need is the private individual to notarize a release. We have never encountered anything like this scenario. 

That being said, she said that he is now MIA in Alaska, but they are hoping to get him to go to a town to notarize the release prior to closing on 7/20. This still sounds sketchy at best to us. Is a private individual who carries the recorded mortgage legally obligated to provide any information? Or can he just hold us in limbo until he decides to notarize this document? Does 7 days notice apply here as well? I am not sure what the technicality difference in him holding a recorded mortgage leaves us with. We are out the cost for inspections and technically still under contract. We are past all objection deadlines on this property. As buyer's, we feel completely unprotected here. 

Thanks all! 

We are assuming that they have, but we have not seen the original previous sale contract nor the note ourselves.

Hey all!

Happy Saturday! We are under contract on an investment property with a closing in two weeks. However, we were informed today that our closing has to be pushed off to a far-off future date (rate will no longer be locked and basically will have to do the financing process again) due to an issue we haven't run into before, but seems simply not legal to us, so we hope we can get some assistance.

We only know as much as we have been told, so here we go... the home we are under contract for was sold to the current owners via an owner carry, so the note is held by a private individual (the owner before the current owners). The individual is currently traveling across Alaska with no set date on when he will return and does not have the note on him. It was proposed that he obtain a bond in lieu of the note so that we could move ahead with our current closing date. However, the individual is refusing to do so because he would have to provide his ss number to the bond company and is not willing to have a family member get the note from his home.

Both agents have basically told us that we are S.O.L. and are at his discretion for when he chooses to return and we can then close. However, from our research, it seems that we do not need him to even close and most of all this seems illegal on his end. Theoretically, the current owners are being forced to pay the individual interest, because he is not allowing them to close on the sale of the property.

None of this was disclosed to us prior to going under contract.  Has anyone encountered this before or have any advice?

It is in the West Highlands area, which is the reason I did not sell it when I moved last year. Though I cannot imagine the appreciation on the 1,200 sq ft home will continue, it is possible in the area. 

I own a house in Denver that I need to continue to rent or sell. 

Purchased for $460,000 with $50,000 down, monthly payment is around $2,350, including an approx. $200 PMI that will get dropped this year.

Current rent is $3,100, which may be high with rental inventory growth in the area, I imagine the realistic rent for the home may be closer to $2,800-$2,900. 

The current value is around $550,000-$560,000 

I am considering selling because 1. I am not sure how long we will see these home prices in the specific area (about 10% appreciation/ year) and 2. The home was built in the 1800's. It is well-maintained and ready to sell, but will need some extensive work in the future including foundation work. A structural engineer took a look and said nothing is needed today, but will be in the future. I don't know if that will be in 5 years or 20. Regardless, a huge expense for a rental property. and finally 3. if the rental price actually goes down, as I believe it will, this cuts into any cash flow on the home. I would take the cash from the sale of this home and purchase another buy and hold investment property to rent with better cash flow and less costs risk.

I lived in the home initially, and have since moved, so it was not initially purchased as a rental, and I have better cash flowing properties. 

Thoughts?