[quote=SK in CV][quote=bearishgurl][quote=t36tran]…Why would Blue Anchor, an outside party with no ownership stake want 45K paid directly to them to settle all the secondary liens? Why would I trust them to do so?…[/quote]
Because it would appear that the seller (and title co) would be on the hook if they didn’t do what you paid them $45K to do. In addition, your escrow company couldn’t prepare your file to close if all the conditions of escrow had not been met.
[/quote]
Why would there be any reason for this to be handled outside of escrow? Is there any good reason for secondary liens not be paid through escrow in the more standard manner, with the buyer receiving title, free of all liens except taxes? If the facilitator actually negotiated payoffs of other loans, there would be no reason not to properly document it.
In fact, if this purchase included a new mortgage, I’m pretty sure the fine print in standard loan docs require that everything go through escrow, or at least be included in the escrow closing statement.[/quote]
Agree with this …. as stated below:
… I would have insisted my broker raise my offer including the $45K to Anchor Blue Advisors and list the liens and closing costs it would be used to pay on the appropriate CAR form and insist on a receipt from HIM for my check or certified funds made out to Blue Anchor. (In any case, the disposition of your $45K would all be shown to you line by line on your HUD 1 at COE.) At the same time, I would have included my vacancy contingency, approval of a soils-report contingency (giving my engineer time to make the report) and selection of my own title company if I didn’t have confidence in the one the LB wanted to use. I doubt these (very reasonable) contingencies would have been countered by the seller….
(punctuation corrected)
There is no good reason for these normal liens, costs and fees NOT to be listed on the HUD 1 and I am unconvinced at this point that the OP was actually asked to pay Blue Anchor “outside of escrow.”
