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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Bill Eckler, Agent, Venice, FL
Sat Jan 24, 2009

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
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Missy Caulk, Agent, Saline, MI
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.
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Dallas Texas, Agent, Dallas, TN
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.
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