Posted by John on December 30, 2005 at 07:09:32:
This is not legal advise.
As a former builder it is not uncommon for a builder to overencumber one property with liens. This is particually true when the builder is building multiple homes within a subdivision. The builder saves some $$ by limiting the number of lots that they encumber. However this way, when this property is sold the builder has to bring cash to the table. If the builder has done this, it may not be the best property to L/O.
new house lease option - Posted by ace
Posted by ace on December 29, 2005 at 22:47:44:
I can L/O a new house from a builder, but find from doing a basic O&E from my title co. that there are already 442k loans in deeds of trust against this house that will only appraise at 290k today. How can I protect myself for a 2 year option price of 314k? I’m concerned the builder may take bankruptcy or may go into forclosure long before I excercise the option. How can I even know that he is not already in trouble? This would be a good deal for both of us otherwise. Thanks- ACE in Colo.