Thanks for your comments, after reading through you comments I am starting to think back of the sequence of events
1. We asked for the title report immediately after our offer was accepted, We asked for it three times (me, wife and agent) they sent one after 10 days which was for another property. Makes me wonder if this was on purpose. We finally got the actual one for the property after 20 days.
2. When I called the escrow company to put my good faith money, the escrow company didn’t seem very interested.
3. When we asked the agent how many months the seller was behind, after a week or so they said 6 months.
4. When we were waiting for the loan pay off paper work. We had to send an extension, the sellers never signed and returned that document.
All these makes me wonder. Anyway I cannot fire anyone 🙂 just my issues. So I asked my real estate agent if we can keep looking at properties. I am glad to announce our offer got accepted for another property.
It has been three days, I checked the San diego county tax offices to be sure the taxes were paid – they are. The seller sent us the termite report immediately on acceptance of our offer. The escrow also sent us the title report (for the right house :)) no liens at initial glance. So went ahead and cancelled our contract with the previous house. Too bad we couldn’t get our 3.63% interest rate.
This property feels right to me, no weird liens or tax issues.
Thanks again everyone for your answers. I really appreciate the help.