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Updated almost 3 years ago on . Most recent reply
LIEN GAP PERIOD ISSUE
Hi All!
I recently have our first property under contract and we were able to find out that the house had a lien on it due to it accruing fines from the city when it was under foreclosure. The person that I am purchasing it from purchased the house as a foreclosure and when they purchased it, the house had $50,000 of fines ($25 a day for over 2 years). When we went to close, the sellers were supposed to get everything cleared and didn’t. Instead, they said it’s not their problem and said if we don’t sign then they are keeping our deposit and putting it back on the market.
My question is regarding the “gap period” when a house is foreclosed on and the city fines the house for looking terrible (overgrown grass,etc), who is responsible for taking care of the fines (and the lien that was placed on the house for the $50,000 fines)?
For me as the buyer, I am purchasing it from the person who purchased it as a foreclosure. But they keep saying it is not something the city can collect on because the fines were given during the “gap period” and won’t close out the liens. Am I wrong for making them close out their liens on the property before I purchase it? They keep saying it’s not a “real lien” because the city can’t collect since it was during the “gap period” but my argument is that it doesn’t matter to me, I need the title to be free and clear 100%. Any ideas? Thank you all!!