Real Estate Woes....advice and opinions sought....

[malta blue]

Long story short:

I finally sold my house and bought a new one. We are scheduled to close on June 21.

My attorney has called to tell me that there is a lein against my current home in the name of the people that I bought the house from. It is for $3,500 and was levied in 2000. I bought the house in 2003, so I also have issues with the attorney I used when I made the purchase, as well as the title company.

I gave my new attorney their new address (they live across the street now) but I may end up having the pay this bill.

Do I let them know that I know they have this judgement against them and that it is preventing me from having a clean sale of the house? I truly detest these people. They are rethugs and extremely nosy.

I will absolutely be suing them if I end up having the pay this, but I wonder if I should give them the heads up, or just let it slam down upon their heads?

As usual DUers, any advice is appreciated.....

[Blue Diadem]

1. I'd let them know..there's always a chance the lien was satisfied but proper paperwork

was never filed to remove it.

We had that happen with our first home we were purchasing way back in mid 70's. It delayed our closing for quite some time. What was really surprising was the lien wasn't from the prior owner, but from the owner before them, dating back to the '50's. As it turned out, the lien had been satisfied, just never recorded as being paid in full.

edited to add: If it's not an error, I do believe your title insurance should be responsible, they should have found it when you purchased the home.

[malta blue]

5. I hope this is the case. nt

[Lex]

2. You shouldn't have to pay it, the title insurance company should.

You should call and find out what paperwork you need to fill out in order to make a claim with the title insurance company.

[malta blue]

6. I don't have title insurance. I mean the lender has

the mortgage insurance, but my attorney at the time told me that it was optional and since I had paid over $1000 for the title search, I was not really in a position to buy it. Plus, neither my stepfather (who is an attorney) nor my bio dad (who is a real estate broker) advised me to buy it. I was 25 - what the hell did I know?:banghead:

[Gormy Cuss]

17. Your dads should pay.

Just kidding. It may very well be the case that the lien was cleared and you don't need to worry. This sort of ghost lien soemtime shows up with old houses. IMHO it's better to let the lawyer handle it rather than have a face-off with the old owners.

Hope it works out well.

[malta blue]

18. ROFL

:rofl:

I already told them that!

Thanks...:hi:

[MissMillie]

3. I would give them the chance to make it right

but make sure you have all the legal documentation to back this up.

[malta blue]

7. But they are such jerks....I suppose that would be the

right thing to do but I really detest them...:evilgrin:

[MissMillie]

9. I understand

but honestly... giving them the opportunity to make it right makes you the bigger person. Don't stoop to their level and be a jerk yourself.

[malta blue]

11. I know you are right MissMillie...

anyhow, perhaps they did already pay it as OurVotesCountOhio posted and the paperwork was not handled properly....

Thanks for the encouragement.:hi:

[flvegan]

13. BTW, you may have recourse against them. How was the property conveyed?

Did you get a Warranty Deed or a Quit Claim Deed from the previous owners?

If you want, feel free to PM me the judgment info (recording info, county, etc) and I can have someone from our underwriting staff in your state take a look at it (I'm in management for a national title insurance underwriter).

[malta blue]

14. I will have to investigate that information...

Thanks for your help - I really appreciate it. I hope to hear from the lawyer by the end of today.

[flvegan]

4. Do NOT pay that lien.

Several things...

1. Depending upon the type of lien, it may be expired. If it's against the prior owners and not a direct hit on the property, it might also not even attach to the property for a number of reasons (tenancy by the entirety, failure by statute, etc);

2. This is a claim on your title insurance policy. Dig out that Owner's Policy you got when you bought it, and MAKE SURE that lien isn't listed in the Schedule BII as an exception;

3. Your attorney shouldn't even be bothering you nor the buyers with this. This should be dealt with between the title agency/attorney and the title company/underwriter that insured that property;

4. Either way, don't pay this lien. If it's mucking the marketability of your property, this needs to be paid by the prior underwriter and your current title company should be writing over it anyway.

[malta blue]

8. You sound like you know your real estate....that is

sound advice, but as I posted above, I don't have title insurance.

I do have a big issue with the attorney who handled that transaction - he is a family friend who did NOT cut me a deal on the fees, and basically f***ed everything up.

I am supposed to close on June 21 - I hope I don't lose my new house over this....

[Lex]

10. If the attorney who did the closing has malpractice insurance

then file a claim with his insurance company.

You really should NOT have to pay the lien.

[malta blue]

12. That I will certainly do.

Thanks for the advice.:hi:

[Beausoleil]

15. Just yesterday, I found out that a Federal Tax Lien

that had been released in '03 was still showing up on one of my credit reports. I was able to call the IRS and get a copy of the Certificate of Release. These things happen; maybe that's all it is.

[malta blue]

16. I certainly hope so. I would hate for it to delay

my closings - we are all set to go...

Thanks for the information.