real estate?

Question

Everyone states that it's the settlement company. However they do not want to take responsiblitly. I know there has to be a board or someone to go to like the "Board of Realtors", but I'm thinking it something else.

1/2 of this was deleted. I'm trying to close on a house. I'm selling it. There is a lien from three years ago. They were paid, but did not sign a letter of satisfaction. Her husband died and now she does not want to sign. I'm going to loose this sale if I don't take action quickly.

When I purchased the home the owners allowed me to take a second on the house for 25K. The house was refinanced and the 25K paid for. She received the money, but here in Va Beach, VA they just give them the letter of satisfaction, and ask that they get it signed and back to be recorded. My settlement company, who had the 25K placed on the hud, and gave the money to the lien holder never followed up to make sure that the lien was cleared. TWO years later, when I want to sell the property, the title is not clear. She has gone of the deep end, she is older, and does not want to sign over the cert.of satisfaction. We have a certified letter mailed to her showing she is in comtempt if she does not sign. If she does not sign with the letter from my attorney, is the settlement company liable, as they should have made her complete the transaction? If you don't know, do you know what dept of ?? that would know.

I do have a cancelled check, however, how do I get this to court quickly and is the settlement company required to complete the paperwork to get her to court? Time is of the essence right now.

I've gone the "title insurance" route as I always purchase buyers and sellers insurance, whichever I'm doing. However the title ins. company is saying they would only be held liable if the lien was still there and I has already sold the home. I need a place that I can call that writes and interprets the code. I don't know how long I have to wait till we take them to court after we sent them a certified letter. I know it's 90 days after they recieve the money, but that's a long time ago. Oh, and she admits that she has been satisfied. She just doesn't want to sign.

The buyers are fine, they are trying to be patient, but they can only extend the lock a few times. This is the original owners that I'm having a hard time with. Who is responsible?

Answer 1

If you have a receipt it will help.

You may have to go to court over this. If someone refuses to sign a release when the lien has been satisfied they can get into a lot of trouble but the widow may be ignorant of this.

If you don't have a receipt, a judge may have to decide if this has really been paid or not.

Answer 2

It is not the settlement company (do you mean title?) or the Board of Realtors you need to speak with. First of all, is it a Mechanic's lien or is it a Tax lien or is it a Lender lien?

A mechanic's lien is a contractor stating they did not get paid. If its a tax lien then the taxes have got to be paid before they clear. If its a lien due to a loan not being paid off,then the lender must be paid. You don't necessarily need a letter of satisfaction as long as the title company can get something in writing from the lender stating its been paid so the title will be clear and not clouded.

You don't make sense when you say she doesn't want to sign the papers now that her husband has died. Is it the buyer's husband who has passed away?

Where is your agent or do you have one? The contract can be null and void if one of the parties to the transaction passes during the process. Your agent can verify with you exactly what is to happen next in your case. Usually, if there is a backup offer they would be next in line if you agree to what they offered,otherwise its back to square one.

You are not the only one this has happened to, but unfortunately its bad timing.

Answer 3

If you don't want to lose the sale and if the amount of the lien is not too much, just pay it again and get your house sold. If you don't have any proof that the lien was paid, you really don't have much of a choice and the title company will not insure that issue and the buyer apparently doesn't want to assume the lien.

As far as responsibility, the title company has nothing to do with it. They only insure title, not guarantee title is lien free.

If this is a follow up question, I apologize that I missed the first half. Not sure where you're located, but title companies in Texas are regulated by the Texas Dept. of Insurance, as are all insurance companies.

Answer 4

You have a lien that is "technically" not released?

Your BUYER wants to back out and will not SIGN?

Do you have clear title or not, simple question?

Is the buyer refusing to close becasue of this or just the death?

I would not close either unless you could present clear title. If the death, then come on keep the earnest money, I would NOT, and move on to another buyer.

ADDED
Sorry thought you were saying the BUYERS had a death in the family.

you need a Lawyer versed in real estate or you will never get this cleared up on your own.

Does this lady have any relatives you could talk to like a son or daughter who might have POA for her if she is "off the deep end"?

Please let your Atty handle this.

Why is he or she not helping you, time for a new Lawyer or are you full discussing this matter with the one you have?

Go here and ask under the real estate section. you will have to register

http://forum.freeadvice.com/forumdisplay.php?f=60

Answer 5

The lender that did the re-fi most certainly required a "Lender's Policy of Title Insurance". Look at the HUD-1. Did you also pay for an Owner's Policy? If so, the title company will have to handle it - they'll front the 25k to allow this sale to go thru and then sue her to get their money back.

If you did not pay for an Owner's Policy, it may be harder. Talk to an attorney.

Answer 6

Yep, that's will present a problem with being to give your buyer "clear and warrantable title" to the property. The settlement agent may be able to escrow the funds from your proceeds, in order to clear title, but you will have to real estate attorney to file a motion to release it, using perhaps the "if I still owed her the money then why wouldn't she have foreclosed" defense. The website below may offer some additional information. Hope it helps

Answer 7

get a lawyer, sometimes just the legal letter will get people moving on honoring agreements.

Answer 8

what is your question??? what happened?