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how to get a property lien released from previous owner?

Posted on: 14th Mar, 2009 08:56 am
The bank paid previous owner off in 1998 (propert was owner financed in 1989 both original owners may be dead, i spoke to their son). In 2005 i found out the bank released property but did not follow up to make sure previous owner released property.. lawyers they hired said they could not find previous owner and that it was our respondsiblity that we should purchase title insurance...pls tell me what i need to do
Hi lms,

If the previous owner has paid off the lien, then there should be a lien release certificate in order to prove that. If you do not want to pay the lien or do not want to purchase the title insurance, then you will have to get hold of the lien release certificate. I guess, the previous owner has not paid off the lien. As you have now purchased the property, you will be liable to pay off the lien.

Thanks
Posted on: 16th Mar, 2009 12:32 am
The lien is paid off. i have a letter from the bank proving it. I had no idea it was my respondability to make sure i needed a release certificate...when i called the bank they gave me no indication i needed to do anything else. In 2005 we sold the property at my suggestion the buyers did a title search which showed the lien had never been released of course they bolted from the sale which upon another person bought the property. i went down to the deeds office today and the woman thought there was some kind of statutary limitations...that if a certain time elapses from the pay off date the lien would be removed ..anyone ever hear of that?
Posted on: 16th Mar, 2009 02:20 pm
Hi lms!

Welcome back to forums!

You should have shown the letter from the bank stating that the lien was paid off to the buyers. Moreover, you should have made it a point to record the lien release certificate at the recorder's office so that the title of property becomes free and clear. This would have helped you in selling the property.

As far as I know, to enforce the claim of lien, a lawsuit must be commenced within 1 year of the recording date of the claim of lien. If no such lawsuit is initiated within a year, then the claim of lien expires. Once the claim of lien expires, the property owner can discharge the claim of lien by a court affidavit.

Feel free to ask if you have further queries.

Sussane
Posted on: 16th Mar, 2009 08:53 pm
Here is a recap of the situation: we moved to the property in 1989, it was owner financed. i have a deed of trust and a warranty deed. we bought another place and couldn't afford to pay 2 mortgages so consolidated in 1998. As i explained earlier i though i could trust the bank to handle every thing since they were more experience then i. Anyway, i was somehow able to locate the owners, negotiated with the original owners son (found out his father passed away and he was handling things for his mother which were who we purchase the property from), well she was paid off (1998) but neither she nor her son released the property which we found out in 2005 when we tried to sell. The bank had lawyers on the case but unfortunately could not find the original owners. (which i found hard to believe)

Anyway the bank sent the letter to the buyers at that time..they still backed out..which i really couldn't blame them. we ended up selling it someone else a month later, ...i gave him copies of everything, so he is fully aware of the situation and is he is paying us. So i really have to find a solution.

Now i am not totally understanding your explaination about about enforcing the lien claim and would i (we) be the property owners?

and also should i have received a release certificate from the bank as well a the previous owners if things would have go the way they were suppose too?

I really appreciate help i not to savey on these things.
Posted on: 17th Mar, 2009 07:42 am
Hi lms,

When you paid off the dues to the original owner way back in 1998, you should have asked them to issue a release certificate and then recorded it at the county recorder's office. This would have made the property free and clear and you wouldn't have faced any issues in selling it off.

You have mentioned: "we ended up selling it someone else a month later, ...i gave him copies of everything, so he is fully aware of the situation and is he is paying us. " If you have already sold the property then you should not worry about the property anymore.
Posted on: 18th Mar, 2009 12:29 am
i had no idea i was supposed to request that...the bank never told me anything. I thought the bank took care of everything...found out in 2005 they didn't

Please tell me what i can do about it now...especially since i have no idea how to contact the previous owners or their son

thanks lms
Posted on: 20th Mar, 2009 11:14 am
Hi lms,

I would suggest you to contact an attorney and take his opinion regarding this issue. He would be the best person to help you.
Posted on: 23rd Mar, 2009 12:16 am
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