Situation: I was referred a client that over months have been noticing he's been hiding things from me, we got a contract to sell his property, after all credits & expenses he was going to net $10,000, but now found out that he has a lien for $8,000 plus didn't paid 2nd inst taxes '05, full '06, 1st ins '07. He managed to hide all these from me, but now that we got a clear to close, he doesn't want to close because he would have to put $2,000 dls at closing. On top of that hes been negotiating repayment plans over the last 8 months with the bank to try to postpone pre-foreclosure, he missed 2 mortgage payments now and still wants to see if can do something about it, but he already bought another house, that he didn't tell me about. It will be hard for him w/ 2 mortgages, but he is upset because he thought he was going to get away with lien & taxes & still net the $10,000 . I had this house at a very good price for 3 months on the market and nothing happened, so I know we got a perfect buyer. What would you do or think about this? Im upset

Is the contract signed on both sides? Talk to your broker but chances are the buyer could contact a lawyer and probably sue the seller for non performance.

Yes of course, contract is signed by both and ready to close. I already notified both attorney since I know the buyer's attorney very well, so they will try to find the best solution to this. I am being very positive to continue with this once the seller's attorney talks to him.

Okay Vero I deal with these people all the time.First the seller does not care about you or your concerns so don't even go there,get that out of your head right now.

The seller was misinformed to beleive that those issues would not show up on title.Is the seller's new house because they wanted to downsize and live with less fo a payment or is it an investment property they just bought??

What kind of lien is the 8,000 for????????If it's a property tax lien forget it as those survive foreclosure and so do irs liens so they won't want to negotiate much if at all on the amount IRS might want to a little bit.If it's another kind of lien they will be happy to get any money.Explain to the lienholder if it's not a tax lien that there interest will be wiped out on foreclosure and they will get nothing!

Then what you can do is have them settle the 8,000 dollar lien for 4,000 and get a release letter with a good through date to give the closing attorney or title company.This way your seller walks with 2k in pocket at closing and no upfront costs.

Other option depending on how much commission your making is for you and the buyers agent to take a 1k hit each credit off of commission to save the deal.It's not awesome but if the deal closes it better to get paid something than to foreclose and get nothing for your efforts.

Let me know more info and maybe I have a few more solutions.Right now the chances of the seller bringing 2k to closing so you can get a check is slim to none.They can sue the seller but the seller already has unpaid liens and taxes which shows the seller won't care anyways.

What you need to do is figure otu how to close the deal and what the seller will agree to and not focus on what they won't do.

good luck-no legal advice

Hi super Realtor, thanks for your great answer, very helpful, Ok yesterday I had a very long talk to my client about his situation, I made him understand that I know he wanted to get some money at closing rather than put money out of his pocket to close. I said that if Banks are getting big discounts, then he wouldn't be the exemption. I said it's better to finish with this cycle of debts and put $2000 dls at closing than risking the whole thing and down the road go to foreclosure. I made him understand that the Bank might still be willing to help him out with a repayment plan but taxes were going to be by march about $9,000 dls. I said, finish this cycle and start from scratch.

I BELIVE HE UNDERSTOOD AND CALLED ME 3 HRS LATER TELLING ME HE WOULD GO AHEAD. AT THAT POINT I DIDN'T THINK ABOUT NEGOTIATING COMISSION YET, BUT LET HIM BE RESPONSIBLE FOR HIS DEBT. LET'S SEE WHAT HAPPENS. THANKS