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My fiance & I signed a contract to buy a house in August. Once we signed the paperwork we were told that there was a contingency with the sellers, they needed to find a house before they would sell. We were upset that they weren't honest with us about it but gave the owners over a month to find housing.

Finally about a month ago they found a house and signed off on the contingency. They closed on their house last week and moved out. Our lawyer sent the paperwork on our broker 2 weeks ago and called me to say that it was all clear and left for her honeymoon. My fiance and I were supposed to close on our house today, but found out two days ago that there is a lien on the house. Now another laywer in the firm is taking care of our stuff and wont give us answers.

The owners of the house lied to us about the lien, our lawyer lied to us about it and we dont know how long it will take to clear up. Our real estate agent has been out of state and not much help.
What should we do?

2007-10-26 06:25:23 · 5 answers · asked by Megs 1 in Business & Finance Renting & Real Estate

No one would tell us about the lien, we were just told that there were some problems and the closing date would need to be moved because of some bank paperwork mixup. Our broker kept bugging the lawyer about what was going on and finally the lawyer told her they knew about a lien on the property for 2 1/2 weeks and started looking into it 2 weeks later!

2007-10-26 06:47:43 · update #1

Should we stick with the house or just back out now?

2007-10-26 06:48:43 · update #2

5 answers

The lien is not your issue.

Assuming the title company can not clear the issue as a previously paid but un-recorded item, it will either be paid from the seller's proceeds or the seller will have to bring money to the table.

2007-10-26 06:41:34 · answer #1 · answered by Anonymous · 1 0

The contingency should have been part of your purchase contract and not an "after thought".

I don't know what state you are in but, my question is why did your broker not know about the lien? When a broker is given a purchase agreement one of the first things done is to order a title report.

That way any issues affecting the title are known before you even get your loan approved. In most states any liens attached to the property and/or sellers/borrowers are reflected. Escrow or title companies (depending on what state you are in) do what is called a "title search" to insure all liens are brought forth for payment or removal prior to closing. All representatives of the seller and buyers involved in the transaction should receive a copy of said report.

I would contact the proper authorities (your state RE Division) this is more than just "dropping the ball" you are not getting proper customer service from your broker, or attorney. If your broker is on her honeymoon there should be someone taking over her files or able to get a hold of her in case of this type of emergency.....honeymoon be damned!!! Just like her wedding/honeymoon is a milestone in her life so is the purchase of your home. She is in a business where she needs to be accessible at all times.

2007-10-26 08:43:44 · answer #2 · answered by Anonymous · 0 0

I have seen this beefore with one of my clients and what we did in that situation was restart a new deal.

You will find that someone has dropped the ball no matter how far you track the trail. The lien can be removed and the lien should have been satisfied at the closing. Any of the proceeds of equity shouldd hhavee paid the debt in full.

I suggest you get your earnest money and find a new place. You have been approved for the funds so that is one less headache to worry about.

If you do go that route and you find a motivated seller you can close in a pretty quick time frame. I hope this helps you guys out.

2007-10-26 10:24:12 · answer #3 · answered by ayhloans 1 · 0 0

Liens on a house are not an issue when YOU buy. The lien is paid off in full at the time of closing, with the amount of the lien payment withheld from the sellers and their payout. No title firm in its right mind would allow you to purchase and close on this house without clearing that lien up. Clearing of the lien should NOT be a delay in closing.

You should not have graciously allowed the sellers to remain in the house and delay your closing, unless the contract you signed clearly covered the situation. It doesn't work that way.

Since you are this deeply involved (at this stage) I would continue working with the folks currently handling the situation. However, you have every right to put some pressure on them to get this resolved.

And NEVER, EVER again use that real estate agent or law firm. They sound like major putz's to me.

2007-10-26 06:39:33 · answer #4 · answered by acermill 7 · 0 0

Back out of it. Go find another Real Estate agent and another home. If there is a lien on that house they cannot legally sell it until the pay for the lien. Good luck. A new house should be a blessing not a burden.

2007-10-26 06:31:34 · answer #5 · answered by DR 3 · 0 1

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