Home Buying in Michigan>Question Details

Mary, Home Buyer in Clarkston, MI

Liens on a title of a foreclosed home

Asked by Mary, Clarkston, MI Sat Jan 24, 2009

My offer was accepted on a foreclosed home. When the title search was done it showed that there were fraudulent liens on the home. The Bank said they cannont sell the home and the offer was cancelled. What can I do in this situation? What will happen to my offer? I really want to purchase this home and I have about 6 months before I have to move.

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The bank cannot transfer ownership of this property until they can do so with a clear title. They will require time to resolve the lien issues before being able to sell the property.

Essentially your contract is cancelled. One would believe these issues would be able to be resolved within your six month window. the bank should be able to speak to this.

From your perspective there is risk associated with beginning the process over again from square one. First, you can't be certain the lien issues will be resolved and second, there is no assurance your offer is the one the bank will accept.

Good luck
0 votes Thank Flag Link Sat Jan 24, 2009
The bank will have to clear the title to sell. Are you sure that they didn't mean close on the home until the liens are cleared up.
The liens will have to gone before a lender will allow you to close.

It may take some time to clear fraudulent lines but it can be done. They have to contact the people who put them on the property and get them removed.
0 votes Thank Flag Link Sat Jan 24, 2009

I presume that you have reviewed the title to determine the liens noted. It is difficult to answer your question without getting more information regarding the property. There may be options for you to still purchase this home. What are the specific liens? What does the bank plan to do to clear up the title issues? Could you rent the home with an option until the bank resolves the title issues? There are solutions available when it comes to clearing up title blemishes, yet without further information, I cannot determine the complexity you are up against. When these situations arise it is recommended that options be discussed with your attorney and the title companies legal department on how to clear these title matters.

If you feel I could be of further assistance by knowing more about your situation, please feel free to call me. I reside in Clarkston and am a Realtor at Max Broock ~ Real Estate One - Downtown Clarkston

Kay Pearson ~ 248-860-0366
Web Reference: http://www.KayPearson.com
0 votes Thank Flag Link Sat Jan 24, 2009
WOW, most banks are aware of any and all liens which is norm in most circumstances such as tax liens, HOA . If bank canceled offer move on , for whatever reason bank would need go thru all red tape remove liens it could be months. SORRY hear this. Bank does not want this home.
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Sat Jan 24, 2009
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