Lein found on home from 2 sellers back...

**Frustrated123** · 08-13-2009, 02:14 PM

I am a first time home buyer that is supposed to close on my house TODAY! The title company called us 3 days ago and told us that they found a lien on the house from 2 sellers back.

The seller trying to sell the home to us now had no idea about it, as his title company did not find the lien. Our title company found it and now everything is up in the air. Our title company is asking for a letter from the previous title company, a letter of indemnity (sp.)? It has been 48 hrs with no response, and we can not get any answers.

We have only been told that the title companies and back and forthing everything. Our feeling is that the other title company is not going to send the letter taking responsibility, considering the time that has passed. Is this right?

What are my rights as far as the money we have forked out in inspection, appraisal, $100 to the seller and $1000 to our current title company?

Are real estate agents supposed to research liens on homes before they list them to sell?

The lien was on the home when the first seller sold the home, it is not something that just popped up, the first title company missed it.

We are very frustrated due to the fact that we have an apartment full of boxes that we agreed to be out of by the 25th of this month, we have electricity, phone, internet, water, and cable to be cancelled for next week, and movers to be cancelled for tomorrow! We have nowhere to go.

Does this happen a lot? Should we get a lawyer?

**Greg** · 08-14-2009, 06:46 AM

The deal is not dead yet. This lien is the responsibility of the sellers title insurance company. They will eventually pay it off but it might take some time. This is why the title work should be done early in the closing process.

See if you can get the sellers to let you move in before closing. See if your landlord will let you stay longer.

Talk to your lender about when your loan expires and can if it can be extended. If there is a fee to get it extended the seller should pay it or even your title company for waiting until the last minute to find the problem.

Don't waste your time pointing fingers, instead look for solutions to your problem

**tucsonhomes** · 08-14-2009, 04:09 PM

The "title" company is a title insurance company. The insurance they issue is valid forever and it is very common practice for one title co to indemnify another title co when this kind of situation occurs.

Get your real estate salesperson involved and the broker for your real estate salesperson.

This is an issue that was probably discovered within the first 10 or 12 days of the escrow.

It will get handled and it should be quickly.