mccollum2748
Junior Member
What is the name of your state? Florida
My mother is in the process of closing on sale of her manufactured home. She currently holds a mortgage on this home but leases the land. In 2005 there was a lien placed on the home
from a flooring contractor dispute. In 2007 my father was due to go to court regarding this dispute but passed away a week before the court date. Because my father was obviously not there to defend himself the judgment was made in favor of the contractor for the amount due plus interest. The closing is being handled by the manufactured development in which my mother lives. When they reviewed with my mother how much she would be getting back at closing we asked about this lien situation which they stated they weren't aware of (even though they were told when we listed the property with them). They told my mother she would have to pay this lien off before the closing. We questioned why we couldn't have it taken out of the closing proceeds rather than pay up front with a chance that the closing could actually fall through. When I spoke with the bank handling both my mothers mortgage and the buyers mortgage she stated that because this land is leased the lien does not attach to the property but to the individual, however, the bank and the housing development both feel that the money still has to be paid before closing because the dispute could then fall onto the new homeowner( everyone I spoke to said that could not happen). The bank then called their lawyer who stated that the lien is no longer effective after one year, however, if a judgment was made in favor of the contractor
then my mother is liable to pay the settlement amount at closing. They also stated that it is my mothers responsibility to call the courts to find out the amount due plus the interest
and then report this amount to the bank how much much she has to pay out so it can be deducted at closing. My question is " Legally, does this debt have to be paid in order for this closing to take place and would not satisfying this debt affect the prospective buyer?"
A prompt response is appreciated!
My mother is in the process of closing on sale of her manufactured home. She currently holds a mortgage on this home but leases the land. In 2005 there was a lien placed on the home
from a flooring contractor dispute. In 2007 my father was due to go to court regarding this dispute but passed away a week before the court date. Because my father was obviously not there to defend himself the judgment was made in favor of the contractor for the amount due plus interest. The closing is being handled by the manufactured development in which my mother lives. When they reviewed with my mother how much she would be getting back at closing we asked about this lien situation which they stated they weren't aware of (even though they were told when we listed the property with them). They told my mother she would have to pay this lien off before the closing. We questioned why we couldn't have it taken out of the closing proceeds rather than pay up front with a chance that the closing could actually fall through. When I spoke with the bank handling both my mothers mortgage and the buyers mortgage she stated that because this land is leased the lien does not attach to the property but to the individual, however, the bank and the housing development both feel that the money still has to be paid before closing because the dispute could then fall onto the new homeowner( everyone I spoke to said that could not happen). The bank then called their lawyer who stated that the lien is no longer effective after one year, however, if a judgment was made in favor of the contractor
then my mother is liable to pay the settlement amount at closing. They also stated that it is my mothers responsibility to call the courts to find out the amount due plus the interest
and then report this amount to the bank how much much she has to pay out so it can be deducted at closing. My question is " Legally, does this debt have to be paid in order for this closing to take place and would not satisfying this debt affect the prospective buyer?"
A prompt response is appreciated!
