Being sued for false claims to a tax lien that has nothing to do with us!!

[Cranial]

In 2007 Sass Muni V DTR purchased the tax bill on the property we now own. We did not purchase the home until 2008 through HUD. We have been advised by the attorney that handled the transaction that all taxes were paid on closing and that it is illegal to transfer a title with a lien in KY....it was also explained to us upon signing that the title we were buying was clean.

A few days ago we received a civil summons stating that Sass Muni V has filed legal action against us to retrieve the original price they paid for the lien plus additional interest (12% per year since they bought the lien). We have also received a cross claim from the county indicating that they cannot find documentation that the claim is verified, but that they also have intent to file further claims against us if the claims are found to be valid.

Obviously these are false claims, as we have nothing to do with taxes owed before we owned the property. The attorney advised us that she was going to "take care of it", but my gut is telling me to at least consider hiring someone. im hoping to get information on the most efficient way to make sure these claims are appropriately handled, so as to identify the entity guilty of neglecting their job and to hold them accountable for this costly and stressful mistake on their part.

From what I've researched and have been told we are not legally responsible as they claim, but someone out the is, and they need to be held accountable...just not sure how to go about it.

 

[Ohiogal]

In 2007 Sass Muni V DTR purchased the tax bill on the property we now own. We did not purchase the home until 2008 through HUD. We have been advised by the attorney that handled the transaction that all taxes were paid on closing and that it is illegal to transfer a title with a lien in KY....it was also explained to us upon signing that the title we were buying was clean.

A few days ago we received a civil summons stating that Sass Muni V has filed legal action against us to retrieve the original price they paid for the lien plus additional interest (12% per year since they bought the lien). We have also received a cross claim from the county indicating that they cannot find documentation that the claim is verified, but that they also have intent to file further claims against us if the claims are found to be valid.

Obviously these are false claims, as we have nothing to do with taxes owed before we owned the property. The attorney advised us that she was going to "take care of it", but my gut is telling me to at least consider hiring someone. im hoping to get information on the most efficient way to make sure these claims are appropriately handled, so as to identify the entity guilty of neglecting their job and to hold them accountable for this costly and stressful mistake on their part.

From what I've researched and have been told we are not legally responsible as they claim, but someone out the is, and they need to be held accountable...just not sure how to go about it.

Contact your title insurance company and inform them of the issue.

 

[latigo]

In 2007 Sass Muni V DTR purchased the tax bill on the property we now own. We did not purchase the home until 2008 through HUD. We have been advised by the attorney that handled the transaction that all taxes were paid on closing and that it is illegal to transfer a title with a lien in KY....it was also explained to us upon signing that the title we were buying was clean.

A few days ago we received a civil summons stating that Sass Muni V has filed legal action against us to retrieve the original price they paid for the lien plus additional interest (12% per year since they bought the lien). We have also received a cross claim from the county indicating that they cannot find documentation that the claim is verified, but that they also have intent to file further claims against us if the claims are found to be valid.

Obviously these are false claims, as we have nothing to do with taxes owed before we owned the property. The attorney advised us that she was going to "take care of it", but my gut is telling me to at least consider hiring someone. im hoping to get information on the most efficient way to make sure these claims are appropriately handled, so as to identify the entity guilty of neglecting their job and to hold them accountable for this costly and stressful mistake on their part.

From what I've researched and have been told we are not legally responsible as they claim, but someone out the is, and they need to be held accountable...just not sure how to go about it.

No, you are not "legally responsible", not personally, that is. But if the lien is valid, the property is responsible.

Apparently you foolishly failed to insist upon obtaining a policy of title insurance prior to closing. The result, metaphorically speaking is that you bought a pig in a poke and no pig.

Also, who is meant by "the attorney that handled the transaction" and stupidly misinformed you that "it is illegal to transfer title to property subject to a lien"? Which is not true in Kentucky or elsewhere. Millions of such transfers of ownership occur daily.

Your attorney or the seller's?

If yours, you may have grounds for a lawsuit for professional misfeasance.

If it was the seller’s attorney that represented that the property was unencumbered, you have the makings of an action against the seller for fraudulent misrepresentation.

But my comments are to be taken as that only. You really must consult with an attorney. And obviously not the one mentioned.

And never, never, never purchase land without a title policy insuring marketable title!!!!

 

[Cranial]

No, you are not "legally responsible", not personally, that is. But if the lien is valid, the property is responsible.

Apparently you foolishly failed to insist upon obtaining a policy of title insurance prior to closing. The result, metaphorically speaking is that you bought a pig in a poke and no pig.

Also, who is meant by "the attorney that handled the transaction" and stupidly misinformed you that "it is illegal to transfer title to property subject to a lien"? Which is not true in Kentucky or elsewhere. Millions of such transfers of ownership occur daily.

Your attorney or the seller's?

If yours, you may have grounds for a lawsuit for professional misfeasance.

If it was the seller’s attorney that represented that the property was unencumbered, you have the makings of an action against the seller for fraudulent misrepresentation.

But my comments are to be taken as that only. You really must consult with an attorney. And obviously not the one mentioned.

And never, never, never purchase land without a title policy insuring marketable title!!!!

I'm going through comments trying to isolate helpful bits, so the first thing that struck me is not purchasing title insurance.....just checked and we actually did. Does that alter any aspect of your opinion about that? Does that change anything?

 

[ecmst12]

As you were already advised, you need to contact the title insurance company about this issue. Right away.

 

[latigo]

I'm going through comments trying to isolate helpful bits, so the first thing that struck me is not purchasing title insurance.....just checked and we actually did. Does that alter any aspect of your opinion about that? Does that change anything?

Mmm? But I suppose better late than never (hopefully).

Probably an ALTA, but for heaven's sake don't take it to the company that issued it. Why give them a heads up. Have your attorney examine the policy to see what is excluded from coverage. Not likely this would be written out, but one never knows.

I suffer from curiosity (as well as other less feline afflictions). So be kind enough to get back in here and report what you find. Okay?