Expert: Dick Dennis - 10/24/2009

Question
We're buying a foreclosure and there is a lien on the property that the sellers attorney claims will be "fixed" by a payment.  But, the wording they sent my Realtor is:
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We don’t know how soon it will be resolved.  Also we need to know what the Lender is willing to accept as proof of clearing the lien.  Will a copy of the canceled check be sufficient to allow us to close?  I have attached a copy of the Title Commitment
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My bank says it's not them who needs this, it's the seller's title company to show clear title.  Some of my questions are (1) are they trying to use this paperwork and copy of a check to claim the lien is satisfied, (2) will that really be the same as a 'clear title', (3) is this something I should avoid, (4) what would YOU do if it were your purchase?


Answer
Nope! I don't close until the lien is wiped out in the county records. Period, Dave. That attorney doesn't know his nose from his toe, as far as I'm concerned. Trouble is, your lender may not wait until the lien is cleared off. Mortgage commitments are good usually for maybe 30-45 days. You should ask them how long will they wait until the lien is cleared off title. But certainly your lender WILL NOT close the loan until the lien is off the title. Guaranteed. You asked what I would do. well, that is what I would do. I do wish you well.

Dick Dennis
dixiedee13@aol.com