Closing delayed due to a mechanics lien

[homeless1]

What is the name of your state (only U.S. law)? Minnesota

Countrywide sold me a foreclosed home that was listed with a real estate agent, but apparently did not clear the title first. There were multiple offers and my offer was accepted. I had a little over 30 days to close.

I was then notified just 2 days before the closing that there was a mechanics lien of $36,000 from 2005 so we couldn't close. It has now been two weeks and I am steadily finding out that my only option may be to pay this lien off myself or cancel the purchase order and buy somewhere else. Countrywide says they won't pay off the lien because they have buyers lined up behind me if it falls through. They think they can re-list it at a higher price to cover the lien. The lien holder knows that somebody is going to pay him so he won't negotiate a lower payoff with me, even though the previous owner thought that he overcharged him, that he did not account for money that was paid him, and the work he did was shoddy (the septic system he installed didn't even pass the inspection and needs to be fixed). The title company is currently reviewing this lien for validity. The lien was filed after the home owner/builder got his mortgage and title insurance. It is possible that the lien holder (excavator) who was a friend of the builder was left off the original construction payoffs. We are still waiting for him to turn in his documentation.

Meanwhile, I am a single mother, whose daughter already switched schools to the new School District, am homeless, and have pets and belongings scattered about. I have invested quite a bit in this property already, have sold my house at a loss, because that's what us good Americans are supposed to do to stimulate the economy (go out and trade up), but right now I can't sleep at night because there seems to
be no resolution and I may lose this place, and there is no time to take this guy to court and Countrywide doesn't want to help me.

Can Countrywide legally choose to re-list a property for more money because they didn't know about this lien? I feel like I am being held hostage to pay this $36,000 that I need for improvements.

Homeless1

[Stevef]

Not having read your purchase contract with Countrywide, there is no way anyone can tell you what their responsibilities are.

In the foreclosure sales I've been involved with, the contracts are one-sided, and offer the buyer little or no recourse for various situations like this. The seller (bank) often reserves the right to cancel the contract at any time up closing. The fact that your belongings and pets are scattered about have no legal weight, and only work to help the bank.

If, in fact, your purchase contracts states the bank will pass clear title to you at closing, and does not state the bank can back out, you can sue for breach if the bank fails to pass clear title to you at closing.

Any recourse you may have is contained within your purchase contract. If there is nothing stated, you may have a suit for breach, in which case you would need an attorney to sue for specific performance (make them do what they said they would do).

I would be willing to bet that the bank has the contract written so they have a way out, and can, in fact, re-list the property for more.