Have Pre-Forclosure Seller under CONTRACT,
I recently got a distressed seller under contract. The title search discoverd a few liens(child suppor lien) and neighborhood association leins . The sellers did not realize this, now they will not be getting enough back when the transaction closes. They will have to come up with a little money.
What are my rights, its under contract, I would be willing to go the difference maybe.
Can they back-out, i want to make some money on this deal somehow.
ANY INFO WOULD BE GREATLY APPRECIATED AS THE CONTRACT EXPIRES IN 2 DAYS. 
PLEASE HELP NOW WITH SUGGESTIONS
I would have to say they are big boys and girls and a contract is a contract. I would let it go and let them deal with the problems. Are you going to pay off thier maxed out credit card bills also? I think not. You will however have to find a way to clear the liens out. Possibly quiet title action with your trusty lawyer?
are you saying that i should hold them to the deal? i think they stood to walk away with 5 g's at closing and now 10 g's worth of liens have showed up.
they would have to come up with the difference right? what if they don't have it?
the main lien is a child support lien, how can i wipe that out without letting it go to forclosure.
do they have to sell now? Please advise.
The answers to these questions are in your contract. What penalties have you written into your contract? How did you CYA? In the end your options are just what your contract says. Does it say that they would bring a "good and merchantable title" to settlement? If it does then you are home free. Well not entirely your contract still has to protect you in other ways.
Another thing to remember: those liens did not "just show up". Liens take a long time to grow into an attachment to your house . They (the Sellers) have been incubating them for a long time by ignoring them which is how they snuck up on them at a time like this. They have to pay the piper some time and you may actually be doing them a favor by making them face them now.
[addsig]
[ Edited by yeaman on Date 05/18/2003 ]