Leins carried over from sale in 1998?

[f66d77]

What is the name of your state?What is the name of your state? New York

Hello all, my father inlaw is very ill and is living in a nursing home, due to a stroke that occured in Feb 2004. In 1998 my father inlaw sold his home to his live in son to save the home from forclosure. There were several liens on the home in my father inlaw's name at the time of sale, which both my wife and I had assumed was paid off at the closing in 98.

So we fast foward to today where the son is living in the home alone after my father inlaw's stroke and could not keep up the payments on the house. My wife's sister(POA) and the son put the house up for sale.
They now have a buyer for the home but said that those leins of my father inlaw's are still on the home and need to be paid off even though the house is in the brother's name.

So after selling the home for 400,000 there will be only 75,000 left. Is it possible that those leins were transfered to the new owner (my brother inlaw that has the same name as my father in law by the way) in 98? I hope I did not make a mess trying to explain this mess, LOL thanks in advance for any advice offered.

 

[seniorjudge]

If the liens have not been paid off, then they are still liens on the land, regardless of who owns it.

 

[f66d77]

Thank you so much for your reply, I thought my FIL's leins would have to be paid off at closing to be able to sell his home to his son or anybody else. Why would these lein holders accept the sale of the home with being paid in 1998? One of the leins is the IRS, they allow a sale to go through without getting a payment?

 

[seniorjudge]

Thank you so much for your reply, I thought my FIL's leins would have to be paid off at closing to be able to sell his home to his son or anybody else. Why would these lein holders accept the sale of the home with being paid in 1998?

I have no idea what was done; this certainly bears some investigation on your part. I would start with a title search at a title company. Or get a lawyer.

In any event, this is something y'all need to check out and soon. Something seems amiss.

 

[f66d77]

I have no idea what was done; this certainly bears some investigation on your part. I would start with a title search at a title company. Or get a lawyer.

In any event, this is something y'all need to check out and soon. Something seems amiss.

Thanks again for you time, it is clearly a sorted matter due to all the wheeling and dealing done now and in the past.

 

[nextwife]

Sometimes, in RE transfers between family members, the proper steps one takes when selling are skipped. It is not uncommon for family to simply deed interests without ever getting any title insurance or update so that they know if there are any liens/judgements that have attached to the RE.

Obviously, first see if the owner has a closing file and review what all was done at transfer. If no file can be found, then get a copy of the last deed from the RODs office. Look at the "drafted by" and "return to" portions of the deed to see if there is an attorneys name. Contact that attoney and see if he handled the closing. If so, see if he can provide a copy of the closing and disbursement statement and a copy of the title work done when that "sale" occured.

 

[seniorjudge]

"...One of the leins is the IRS, they allow a sale to go through without getting a payment?..."

Actually, yes. I have seen this happen a few times and have been totally astounded every time!

You need to do your legwork; we've given you some good ideas on how to start.

Good luck.

 

[f66d77]

"...One of the leins is the IRS, they allow a sale to go through without getting a payment?..."

Actually, yes. I have seen this happen a few times and have been totally astounded every time!

You need to do your legwork; we've given you some good ideas on how to start.

Good luck.

Thank you both SeniorJudge and nextwife for sharing your knowledge and time. Glad to hear that it is possible for those leins to still be there to tell you the truth.