what happens if lein cant be satisfied?

Question

I have a friend who borrows money from their grandparents to buy a home with his wife, their is a lien against the tiltle, he accepted a offer to sale but the was told he was going to war can the titke company force the lien holder to release lien even though the grandparents nam is no where un the contract and lives 50 miles away? Title company may not be able to close as they sent paperwork in the mail to lien holder and nothing has been sent back if both parties wait till closing date if the lien isnt satisfied against the property and the closing cant happen the contract expires ... what could happen i dont even think my friend has to show up because he isnt the morgager his grandmother is and no where did he sign anything saying his granmother would release lien policy title cant be insured with lien against it what do you think? I have no idea if intentions are to back out but if it cant close he doesnt need to back out simply let the contract expire eeh

the lien holder simply wont disclose any information nor even sign the paperwork the title company needs to satisfy the lien against the title, the lien holder isnt anwhere in the contract at all and nor did the realtor put an addemdum saying that the lieb holder would release lien, the contract only has her grandchildrens signture on it since he is going to war she refuses to sign anything the title company sent and thus the date to close may come and pass, the titke company cant force he lien holder to release any information as the lien holder only knows what is actually owed...what bank will lend out money to the buyer with a lien against the title..

failure to close isnt a breach of contractual obligation under the letter of the law in virginia.. unless the 2 parties agreed to extend out the close date lol....

Answer 1

Ok, if you are selling a lien on the home, at closing someone representing the lender should be there,

The seller has two or three certified checks, one goes to the line holder who will then release the lien.
next one check goes to the attorneys for closing costs and another check goes to the seller for any difference.

A property can not be sold, to someone else untill the lien is released.

Answer 2

Okay, most contracts to sell real property are contracts for the Seller to provide "title free of all liens and defects".

That means the Seller has to clear the liens. I can assure you that if it were invalid, like against someone that didn't actually own the property, the Title Company would ignore it. They tend to know what they are doing.

The lienholder does NOT have to just voluntarily give it up. They CAN demand to be paid, or not give up their lien. Of course, if it isn't valid, there are ways to clear it, depending on state laws. Again, the title companies know what's what.

Now, if they are like a judgement lien, behind a regular first and second mortgage, if you clear the first and second, they become the FIRST lien, ahead of the new owner's new mortgage. No lender in their right mind would agree to this, they want the title company to insure them as First. No title company will do this if they are not paid.

I'm sorry, but if the title company says you have to pay them, you probably have to pay them.

Answer 3

Funds from other sources must be taken to satisfy the debt before the enforcement of the lien.