Home Buying in 12780>Question Details

Coffee41, Home Buyer in 12780

Liens discovered just before closing, what does this mean?

Asked by Coffee41, 12780 Fri Nov 25, 2011

My husband and I are in the process of purchasing a home through a short sale. We have already paid out over $800 for home inspection and appraisal. We were just getting closing scheduled and found out by our attorney that the seller has liens/judgements which I guess showed up on title search, I assume? Our realtor said it was known that there was an $800 lien that was going to be paid at closing but these other liens(or lien) was not known but worse case scenario they can escrow it and pay them at closing. CAN this actually be done that they are paid AT closing? Will we get a clear title this way? I am very concerned. If it is a major issue and the seller can't pay the liens...what recourse do we have? Can we walk away? What about the money we have already paid out of pocket? HELP! Just found all this out this past Wednesday, then we lost 4 days due to Thanksgiving, day after and the weekend and we were supposed to close this Tuesday or Weds...the 29th or 30th.

Help the community by answering this question:


First, your attorney should be able to help you,(that is why you have hired him).
The liens that are attached to the property need to cleared, you need to find out the exact ammount of All of them, it could be $100 or $100,000, then you can decide if you wish to move forward or not.

Good luck
Paul Filippone
0 votes Thank Flag Link Sat Nov 26, 2011
in the worst scenario, you walk away from a home that would not have a clear title. Better to lose the 800 for inspections, etc than to not get a clear title. It may have just been filed.
0 votes Thank Flag Link Fri Nov 25, 2011
This is pretty common and usually not a deal breaker. Too bad they are just now finding out about this. Title company should have seen it a long time ago. Your attorney, agent and short sale negotiator will have to get this cleared up. Unfortunately, this may delay your closing. But that's how short sales are.
0 votes Thank Flag Link Fri Nov 25, 2011
Anna is correct, you need to discuss this with your attorney. Often these liens can be negotiated for a much reduced amount. If the home were to go to foreclosure the lien holders would get nothing, absolutely zero, so they have to decide whether to take a reduced amount, or to remove the lien and pursue the seller from some asset other than the real estate, or whether to take a chance on ending up with nothing.

Who is negotiating the short sale? Your attorney? Your realtor? That is the person who should be negotating with the lien holders to get this resolved.

Good Luck, don't give up just yet, these situations come up all the time with short sales and somehow they get resolved almost every time.
0 votes Thank Flag Link Fri Nov 25, 2011
Since you state that you have an attorney, consider a consultation and ask for any necessary clarifications regarding any existing liens, he/she can better advise as what can be done to rectify the situation; since none of us are directly involved in the transaction, any answers would be guesswork....
0 votes Thank Flag Link Fri Nov 25, 2011
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