Housing Blues….

We got some bad news today… actually it’s been building up since last week.

It turns out that the guy selling the house have a contract to buy is in some deep financial trouble and didn’t bother to tell anyone – including his own real estate agent.

According to the title search results he has two mortgages on the property totalling to about 15% more than its appraised value (after two rather generous appraisals). He also owes $4,800.00 to the Gas Company and $1650.00 to the Water Company – both of which are lein-able bills meaning that he must clear them at or before settlement for the transfer to go through.

He THOUGHT he would be walking away from settlement with 10-20 grand in his pocket. Since he has discovered he will be lucky to walk away debt free (if the mortgage companies decide to accept the short-sell) and could potentially walk away with 20k in debt and nothing to show for it.

All we know so far is that settlement on Thursday the 13th (the planned-contracted date) is unlikely. Our agent is going to try to drag a commit date out of them tomorrow and let us know when they are POSITIVE they will have this mess resolved. Once we know that date we can decide if we want to wait it out or walk away.

We both really looooooooooooooooooooooooove this house so if it can be resolved by the end of the year we will probably wait it out.

If the worse happens and we walk away we are only out the cost of the house inspection.

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