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Updated over 3 years ago on . Most recent reply

User Stats

25
Posts
6
Votes
Adrian Peterson
  • Investor
  • Newport Beach, CA
6
Votes |
25
Posts

Seller can't clear title

Adrian Peterson
  • Investor
  • Newport Beach, CA
Posted

A client was set to purchasing a property in So Cal. They were scheduled to close escrow in a couple days only to discover the seller has a lien on the property for a debt that should've been removed in their bankruptcy 5 years ago. The lienholder cannot be located and Title would not close unless lien is removed. Escrow really dropped the ball since that lien should've been discovered and resolved prior to buyer giving their landlord 'notice to vacate'.

Now Seller is asking for a minimum 30 day extension to try locate lienholder and clear lien however, buyers would have no accommodations to stay in the interim, as their landlord stated they have to be out in 14 days since landlord already filled their vacancy with another tenant and have no other units available. Also, buyer's were informed by their lender that their loan is about to expire so they would have to be approved once again.

Buyer has 3 little girls all in grade school so you can imagine the stress and inconvenience this has caused them. Aside from their EMD, Buyers had paid for appraisal and home inspection costs.

What recourse does Buyer have and what would you suggest?

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