Val's Gut Might Have Been Right

Try to remember that time in September, when Hick and The Pony were all hyped up to buy Cheap House. When the 2/3 partnership ruled, and Val was outvoted. It's a nice little house in a nice little neighborhood, over by the School-Turn Casey's. It's pretty close to Bargain House. The problem is that it's a junked-up house in ill repair on the inside, though structurally sound. The biggest problem is that I'm concerned about the sellers. 

Cheap House was about to be a foreclosure. Hick got a tip from a Loan Officer, saying it wasn't quite ready yet. When he drove by to look at it, the lady who was selling it (for a relative) was there, and let Hick inside. She told Hick the amount owed on the house. They forged a deal. Off the books, Hick would pay her a little bonus for her help, as long as he could have the contents of the shed in the back yard. She could have anything she wanted inside the house. The bonus plus Hick's offer were a bit less than the amount owed to the loan company. Hick's offer was accepted on September 18th. So we got a good deal.

Well. We MIGHT get a good deal. We're still waiting for a closing date!!!

The loan company sent information to a title company to start the paperwork for the closing. Hick called both places over the past couple months, seeking info on when we could close. Supposedly they were tying up loose ends, getting The Lady to sign some paperwork. I again told Hick that I didn't have a good feeling about this deal. It shouldn't take so long. My original concern is still in effect: The Lady's relative might not want to sell, despite giving her power of attorney to do the deal. 

Hick said that wouldn't happen. But he was already wrong on one item, in that the relative is roaming freely among us, when originally that was not the case. Anyhoo... Hick said he told the title company that he wanted a complete title search, and title insurance.

The closing was finally scheduled for Tuesday, December 9th. Hick got that date when he called last week. But no time. He emphasized that he would need the amount, to go by the bank for a check. Yet there was no contact. Monday, the day before the mystery-o'clock closing, Hick called the Loan Officer to find out what was going on with the title company, since nobody was telling him anything.

There are two judgments against the property. To a total of around $7000. This was discovered during the title search for our title insurance. The loan company had no idea. The wait is for The Lady to sign paperwork with a financial institution to take care of that $7000.

Val's gut knows its stuff! If a Cheap House seems too good to true, it most likely IS. Hick says it won't be a problem, even if some other lien comes up after our purchase. That the title company will be on the hook for that. It's what title insurance is for. Without it, we would have to pay the judgment, or we couldn't resell the house. 

I hope Hick knows title insurance better than trailer insurance...