<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by rturbo:
I cosigned on my mothers house in 1993. Now she is selling it but the title company found a judgement filed against me in 1992.
The title company says the sale cannot go through until this judgement is satisfied.
Homeguru response: yes that is correct legal procedure on the part of the title/escrow company.
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I was never aware of this judgement because they served me by newspaper ad. I tried to settle it by making an offer of 50%. They still refuse to settle for a discount.
HomeGuru response: You knew that you had not paid an outstanding loan and was "hiding out" so you could not be personally served with the legal documents. Thus the ceditor served you via what is known as service by publication.
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Should the title company in 1993 be liable for not finding this lein in 1993 when the purchase was made?
HomeGuru response: What purchase? You only stated that you cosigned a loan and you did not state that you were also on title to this subject property. How could a title company be responsible for your unpaid loan? If a title search was made prior to you and your mother buying the property, if that was the case, then no lien would be shown on title because title would have been in the name of the Seller.
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It's a FHA loan on the house. Any ideas?<HR></BLOCKQUOTE>
HomeGuru response: you could have negotiated the loan repayment at the time of default but now the loan is secured by the lien and they have no reason to negotiate since FHA will get paid as long as there is enough equity in the property to pay off the first mortgage and the amount of the lien. You must have bought a home under an FHA loan and defaulted, resulting in the property being sold and a deficiency judgement issued against you. Since you "walked", the creditor filed a judgement lien against your asset which is unfortunately your and your mother's property.
