musicianamanda
New member
UPDATE: The bank is removing the lien and is going to work with the neighbor on correcting her loan. Thank you all for the advice!
My husband and I are trying to purchase a house and a lien has been found on the property. The seller originally bought the property for cash and flipped it. Because he didn't have a mortgage and paid cash he did not have Title Insurance, however, he used a company to do a title search and it came up clean. Fast forward to this month, the seller signed an agreement that we could move into the property two days before closing so that we could vacate our current home and prepare it for the new owners. We moved all of our belongings and personal property into the new house. We were also granted permission to install our new kitchen appliances as well as a new hot water heater.
The day of our closing, we first closed on our old home and received our check for the equity (made out to the settlement company as we were closing on the new home several hours later.) 45 minutes before closing on our new home we received a call from our real estate agent that a lien was found on the property. After many conversations we have finally found out where the lien is. The neighbor lady took out a HELOC in 2011 and M&T Bank issued the HELOC with the wrong property. In the legal description it says "Lot 1" but instead of Lot 1 from her property, they took the parcel number of Lot 1 from the property we are trying to buy. The lawyer from our Real Estate Agency is talking with a liens lawyer at M&T, but they are unwilling to relinquish "our" property from the lady's loan because they they will not have collateral in her loan. They talked about Foreclosing on her house or a Deed in Lieu of Foreclosure so they would get their money back, but this also seem so wrong as it was their mistake, and also she has been making consistent payments on the loan every month. We were granted permission to stay in the house until December 13 and hopefully a resolution will come of it in the meantime, but this all seems so wrong on so many levels. The bank screwed up and yet they will not relinquish the property or try to make it right.
I am wondering what we can do to help this process along both for us as well as the neighbor. We are looking out for ourselves, but also don't want to see this lady lose her house because of a mistake. Also, we put over $6,000 of appliances in the home as the seller was sure we would be good to go. He had fixed it up to our specifications over the summer, and had no intention of putting it on the market. He had many opportunities to back out of our contracts, so it's not a case where we think he wants to get out of our contract. If he does, I am sure there will be some other legal route that we would need to go through because all of our personal property is in the house, we cancelled our storage unit contracts, and we now have no where to live (as of December 13.)
Any words of advice would be much appreciated.
My husband and I are trying to purchase a house and a lien has been found on the property. The seller originally bought the property for cash and flipped it. Because he didn't have a mortgage and paid cash he did not have Title Insurance, however, he used a company to do a title search and it came up clean. Fast forward to this month, the seller signed an agreement that we could move into the property two days before closing so that we could vacate our current home and prepare it for the new owners. We moved all of our belongings and personal property into the new house. We were also granted permission to install our new kitchen appliances as well as a new hot water heater.
The day of our closing, we first closed on our old home and received our check for the equity (made out to the settlement company as we were closing on the new home several hours later.) 45 minutes before closing on our new home we received a call from our real estate agent that a lien was found on the property. After many conversations we have finally found out where the lien is. The neighbor lady took out a HELOC in 2011 and M&T Bank issued the HELOC with the wrong property. In the legal description it says "Lot 1" but instead of Lot 1 from her property, they took the parcel number of Lot 1 from the property we are trying to buy. The lawyer from our Real Estate Agency is talking with a liens lawyer at M&T, but they are unwilling to relinquish "our" property from the lady's loan because they they will not have collateral in her loan. They talked about Foreclosing on her house or a Deed in Lieu of Foreclosure so they would get their money back, but this also seem so wrong as it was their mistake, and also she has been making consistent payments on the loan every month. We were granted permission to stay in the house until December 13 and hopefully a resolution will come of it in the meantime, but this all seems so wrong on so many levels. The bank screwed up and yet they will not relinquish the property or try to make it right.
I am wondering what we can do to help this process along both for us as well as the neighbor. We are looking out for ourselves, but also don't want to see this lady lose her house because of a mistake. Also, we put over $6,000 of appliances in the home as the seller was sure we would be good to go. He had fixed it up to our specifications over the summer, and had no intention of putting it on the market. He had many opportunities to back out of our contracts, so it's not a case where we think he wants to get out of our contract. If he does, I am sure there will be some other legal route that we would need to go through because all of our personal property is in the house, we cancelled our storage unit contracts, and we now have no where to live (as of December 13.)
Any words of advice would be much appreciated.
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