DesertRose

Zillow is not an accurate site. You will get a better idea of current actual market value from a real estate agent by way of a comparative market analysis (CMA) which they will do for free. Or hire ana appraiser. But again you'd be getting today's actual market value. As for the future, that is nothing but speculation.

In some areas prices have plunged pretty dramatically. Typically condos do not hold their value as well as detached units & you can run into issues with the complex itself if the foreclosure, vacancy rate or percentage of renters is too high lenders can be reluctant to make loans on units in that complex. Are you planning to sell in the near future or just concerned about the next reset? Could you rent out your unit for enough to cover your monthly costs? There are members here who have successfully worked out loan modifications with their lenders hopefully they can point you in the right direction if that is what you are looking into.

Specific performance is a remedy in equity which plaintiff could request if the bank breached a valid contract. Buyer will have to file a lawsuit to get it. At this time, from the facts we have there is no enforcable contract. Buyer's offer to purchase is contingent upon getting a loan, getting a loan will require the seller produce good & marketable title which seller cannot do at this time. If you have some insight into "options" to get the back to be "reasonable" please post them. I'd be fascinated.

What mortgage company are you talking about? The one holding the current mortgage (ie the seller's) or the one buyer intends to use to finance the purchase? Buyer's mortgage company would have to allow the buyer to finance the cost of paying off the lien if they are going to pay it off which makes no sense. In order for buyer's lender to pay the lien off the property will have to appraise high enough to cover the lien (plus any penalties) & the buyer will have to be willing to pay the higher amount & be qualfied to do so.

At this point it doesn't matter because the OP does not own the property, thus OP's lender has no interest in paying off the lien. Paying the lien has to be done by the seller, not the buyer. Yes tax liens take first priority that is why no lender will loan on a property until the lien is cleared. I only know RE not tax laws, perhaps there is way for the debtor to work something out with IRS but again that has to be dealt with by the seller not the buyer. It is not buyer's lien & unfortunately there is nothing buyer can do in this case unless the seller is willing to pay off the lien.

Sorry Dutchess I was responding to ristay's post that was not logical. Short sales are rough under the best of circumstances. The problem is there is no one "decider" at the bank who can just reduce the purchase price, there are a lot of players. They know how low they can go. You may find bank owned properties much less hassle as long as your agent does her homework & understands how to put a strong offer together.

Yes seller can do whatever seller chooses. You could put in your offer any restrictions you wish on seller looking at other offers but an REO seller won't agree. Some of my lender/sellers require a multiple offer disclosure to be signed by all buyers, others do not. But a seller can sell or choose not to sell to anyone for any reason or no reason. Once an offer is accepted the seller is free to accept backup offers as well which is wise in this market with so many deals falling apart over financing.

What mortgage company are you talking about? The buyer's? Or are you talking about an REO seller? Why would they loan money to pay off a tax lien? Did the property appriase for enough over the purchase price to cover the lien? This makes no sense. The buyer would be stuck paying for it via his mortgage.

If you are shopping for a bank ownec property (REO) yes there will be an expiration date. Most of my lender/sellers want the pre approval dated within 60 days of the day you make the offer.

No they will not necessarily pay the lien off. Buyer cannot borrow the funds to pay off the seller's tax lien unless I've been missing something all these years. Your confusion may be due to the fact that liens are sometimes paid through escrow when seller's proceeds are sufficiently high enough over the full purchase price plus costs to leave seller with an overage. Thus the seller would pay it out of seller's surplus proceeds paid via check from escrow to the taxing authority.

Sounds as if seller cannot perform at this time due to the lien. Seller can't deliver clear & marketable title to you thus it is not possible for them to sell you the property as title is not clear. You could not get title insurance on the property with a tax lien against it thus you would not be able to get a mortgage until the lien is cleared. Tax liens btw take priority over all others. Sure they can sell it to whomever they wish at whatever price they can get down the road either for cash or a new appraised value. The bank certainly can get it's own appraisal. If you read the specific wording of your purchase contract you may find language in there that makes it more clear. In any case, your lender is not going to give you a loan on the house with the lien in place. So you actually can't perform the contract either. I would not be surprised if you look at your contract it states expressly that seller has to provide clear & marketable title & if seller can't do that, you are excused from the contract. If there is that much interest in the property I wouldn't expect seller to be very flexible. Short sales are a rough way to go.

FICO does not equal pre approval. There are other factors lenders have to consider. I totally agree about getting pre approved before you waste 5 mins house hunting. If the agent is not listening to you & shows you homes outside of your price range, get another agent.

Here in CA it can be deposited to the broker's trust account or deposited into escrow which is the more common way of dealing with it here.

Exactly. And do keep in mind that if the market is declining the lenders will routinely cut the appraised value in anticipation of future decline.

Typically once the sale is complete the property is assigned to a local broker for management & disposition. The agent normally makes the first visit to the property to determine occupancy & to offer CFK. The occupancy check is usually the first task on the list once the property is assigned. There is really no way for you to contact anyone pre emptively. If you are not home when the agent makes the first occupancy check, they may leave a notice some will do certified mail but that is not typical for agents. Your state may have specific laws dealing with tenants in that situation. CA just passed a new law that gives tenants 60 days rather than 30 to move out after a foreclosure. If you can reach an agreement on the CFK amount & move out date the agent will deliver your check in exchange for keys as long as the property is not damaged & is in "broom clean" condition.