Quote:
Originally posted by str8outavannuys
I'm told by my title insurance company that they'll indemnify me and defend against any recorded actions, but that they might not be willing to let the sale go through.
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I'm not sure what you mean by this. Do you mean that the escrow agent won't close? If so, ask pointed questions about why not. Or do you mean that you won't be able to get title insurance? (Which means that you won't be able to get financing and you won't be able to close.) Since title insurance doesn't issue prior to close and since they insure marketable title, this assertion doesn't mean squat if you don't close. (Sure, we'll indemnify you if you close, but we won't ever let you close.)
Also, since you mentioned that this was a distressed property, you will need to review the underlying documents as well as the prelim. However, CA courts (you are in CA, aren't you?) tell you that you aren't entitled to rely on a prelim (it's not an abstract) so all you really get is title insurance insuring marketable title, as opposed to actually having marketable title.
Problem is, you probably chased this house all over town, submitting multiple offers before you were finally in contract and then wound up reeling from the sticker shock. Even if you don't particularly like the house, at least it's a house. A house, any house, looks good in your market, I'd bet.
If you can get your deposit back, consider getting it back and starting over. Think about whether you need a new broker.
OTOH, if market values have risen since you made the deal, this could very well be noise on the part of the seller to get you to drop out so the seller can take a higher offer. Think carefully before you walk if you think this could be the case. And if this particular seller makes a living buying distressed properties and then flipping them, you may very well be dealing with a backup offer situation.
AM(buying a house really sucks, huh?)M
