lien payoff BLOW OFF

[ishallreturn99]

What is the name of your state?NH

OK, here's a head-scratcher for the experts:
I am trying to refi my home. I had previously been a personal guarantor on a business lease that the tenant went bad on (leaving me on the hook) - the landlord of the business lease has a current suit pending VS me seeking $267k in "damages" for the unfulfilled lease that I personally guaranteed. I am vigorously protesting the damages amount, and will fight this in court. A trial has been scheduled but continued and is now months away (not even scheduled yet) to determine an actual judgment. I do expect there will be SOME liability on my part, and the landlord already (6 or 8 months ago) went to court and requested a lien on my personal home, which WAS GRANTED in the amount of $90k, but without an actual judgment.
So now, I am trying to refinance my home, have plenty of available equity, and am willing to pay off the $90k lien as part of the refi, but the lienholder will not even RESPOND to the title companies and provide a payoff - purposefully. He (the lienholder, or more specifically his attorney), is apparently looking to hold onto the $90k lien and then hoping for an eventual judgment well above that once we go to trial, whereupon they can RAISE the lien to any higher-granted judgment amount (if there is one). I'm sure they realize that if I am able to pay their lien off and refi to the hilt BEFORE a judgment, there will be no equity left in the property for them to go after. So, again, they are stonewalling my attempts to get a payoff and settle the lien for the $90k granted amount (plus whatever interest or fees are legally allowable).
Can they do this? What legal actions can I take to FORCE them to repsond and provide my title people with a payoff statement)? My current attorney claims that if I push them too hard, they will just force us into court, and a court would allow that, to see if the judgment will likely be higher than $90k, and then probably RAISE the lien amount in anticipation of that possibly higher judgment, which we DONT want....so how can I just FORCE them somehow to simply provide the $90k payoff statement to my title people? All the title and refi people keep telling me that my attorney SHOULD be able to make maneuvers to force that, but he hasnt been able to do anything, and I am getting frustrated! What shoudl I have him do, or what should I ask a different attorney to do? Thanks!

[JETX]

Originally Posted by ishallreturn99

Can they do this?

Yep. Not uncommon for a plaintiff to get 'pre-trial' (sequest) your assets pending a final resolution of the court. Apparently, they have shown the court that their concerns for 'protecting' their asset rights were sufficient to warrant this action.

What legal actions can I take to FORCE them to repsond and provide my title people with a payoff statement)?

You can file a bond in the FULL amount of the claim.

so how can I just FORCE them somehow to simply provide the $90k payoff statement to my title people?

You can't.

[ishallreturn99]

I dont understand - do you mean file a bond on the full $267k that the plaintiff is seeking even though the court has awarded only the $90k lien? What would be the procedure to do that, and with that amounted bonded would that then satisfy the title insurance folks so that I could complete my refi? One mortgage company did mention getting "bonded out", but didnt elaborate.
Do you have any idea of the general cost structure of such a bond, how to obtain it, etc?
Thanks so much for your help!

[nextwife]

I was just involved in a closing in which a lien filing was in litigation. The owners escrowed an amount sufficient to more than cover the lien, legal costs and any interest with the title company. Those funds were held out in escrow by the title company to cover any potential claims exposure, and they, in turn, provided "affirmative coverage" over the matter. If you have sufficient equity to escrow what the title company requires, they might insure over it. If you don't have sufficient equity, you may need to wait before refinancing until all litigation in this matter is completed.

[ishallreturn99]

can you tell me what title insurance company was able to insure over the disputed lien via escrow? I havent been able to find one who will do that (in NH).
Thanks!

[nextwife]

Remember, the party ESCROWED funds more than sufficient to cover any potential claims exposure. In this case, it was a First American office. But other underwriters would generally consider offering the same if they were isolated financially from any real risk.

Had you proposed an escrow?

[ishallreturn99]

no, I hadn't proposed that, but I *WILL*! Thanks!
W