Desperate for help.....

[Anonymous]

I am scheduled to settle on a home on Monday (yes 4 days from now) and the title company found a lein on the home!! I am freaking out right now! Apparently the owner needs to come up with $13,000 to pay the fees and interest ( no principle) that has accrued on this home before settlement can happen. He is talking with the bank now to try to get it resolved but he has no money to be able to pay it. My realtor says that she thinks the bank will forgive the fees in order to get him out of the home and the mess that he is in finacially. She is hopeful that we can still settle on Monday.

Has anyone heard of this happening or am I screwed out of a place to live and the home I want so badly?

[Anonymous]

If the bank that holds the lien is the same bank that has the mortgage they may do it (it seems weird that they would have a lien).  If the lien is a separate company someone will have to come up with the cash to pay it off (or at least settle it for a set amount).  The seller's bank may be willing to eat the lien, but that would be a short sale if they take less than owed for the property and would damage the sellers credit as well as be a process that would take awhile.  There may be a way to get the lien holder to agree to a settlement and all parties agree to eat a piece (realtor, LO, buyer, seller) to satisfy it.  Hopefully a solution works out

[Anonymous]

Thanks for the reply Mickie.

 I am not sure who holds the lien on the home and it appears the bank isn't making this easy. I must be out of the apartment on April 1st and I may have nowhere to go now. I have all the utilities scheduled to go into my name on Monday (the original date of settlement) and with today being the only hope of settling this thing for the seller is slim. I am beyond upset over this as I have no clue what I can do now.

Everything is fine on my end for the purchase, but the realtor doesn't sound hopeful. She is trying to get me to look at another home instead. I said no to her...I mean I have put money into this sale (appraisal, inspection etc.)and I lose it if I should buy another home.

I have no money to pay any more of the purchase price than what I have agreed to without making us broke. How could this have been missed all this time? Don't they verify that there are no liens before the home goes on the market?

[Anonymous]

Why was the title company only getting this info to you this close to close?  I would think the underwriter on your loan would have wanted a clear title before giving final approval.  The bottom line is that it is the title companies fault. Sometimes liens appear that you can be totally unaware of.  That is why you pay a title company and pay for title insurance.  Anyways, good luck with it. 

[Anonymous]

From what I am now being told, the lien is placed due to a partial mortgage from HUD. It stated that if the home was sold, the money had to be repaid. They say that it wasn't discovered until Thursday when the titel company was preparing it...but I don't know. It does sound a bit fishy.

 My realtor and the sellers realtor agreed to forgo their payment from the sale and place it towards the lien to allow the home to sell as planned on Monday if at all possible. My realtor stated that it will be property of the bank within a few months anyway becasue the seller is saying that he is unable and unwilling to pay anything further on the home. It would be a lose-lose situation for us and the seller if something isn't worked out. Also, the sellers realtor would lose the sale regardless if taken over by the bank and my realtor won't make any money from us either (my husband stated he refuses to buy anything if this doesn't go through). Therefore, she said that at least the seller and us would make out in the deal. I thought that was really nice of them to offer to do that. I don't think I would work for free, but hey...more power to them for offering

 As for now, I am sitting here waiting to hear how this will play out and when settlement can happen.