Expert: Dick Dennis - 6/1/2006

Question
I recently was given property from a family member and had it rezoned, I then went to a dealer and they ordered a modular home which I signed a purchase agreement for, they came out and set it up on this property on permanent foundation, and said we could close in about two days all they had to do is finish the front and back porch.  They walked us through everything from helping us to get the loan, clearing old stuff of credit report, going through the rezoning, setting up the house, ( this is the mobile home dealer) and then all of a sudden after they had told us about a month and a half ago that they had already done this they call and said that they had just done the title search and it came back and there are two leins on this property agianst my mother, one from the IRS and the other from her mortgage co.  Now we have been without a home for over a year, we can't live in this one, we have to pay meter fees for water and electric.  So are we still bound by this purchase agreement and are we responsible for the cost of setting it up on this property if they were to come out and take it down, since they are threatning to, they call about 7 times a week non stop, I am getting sick of being harrassed and stuck in the middle!!  I am real tired of living with relatives waiting to see what is going to happen.  We have been waiting for the IRS to decide if they will take an offer.  It is no small fee I hear.  Please can you offer any suggestions I am desperate, I have called lawyers and it seems like I can't even get anyone to talk to me, this is one big mess, I don't blame them for not calling.  I appreciate any help!!

Answer
When you were given the property, you should have immediately bought title insurance on the property. They could have cleared the property for you or told you what you must do to clear the title. Now you know why the family member GAVE you that property.

But that's water under the bridge. You know that you MUST clear off the liens, especially that IRS lien. And that is not done over night. There are companies around who usually have someone who used to be an IRS employee and they offer to take care of IRS liens for you and negotiate with the IRS to your satisfaction. Or contact an ENROLLED agent. This person has passed certain tests and is likely a certified public accountant. That person can take care of the IRS lien for you because he/she knows who to see and talk to.

I don't know who is helping you to work with the IRS now to negotiate an "offer-in-compromise," but obviously that person does not know how to do it and is wasting your time.

If you back out of the purchase of the house they can take you to court while putting ANOTHER (mechanic's) lien on the property until they get paid. Obviously, it is not their fault that they cannot continue on the job.

Although, I don't understand how or why your lender allowed the construction continue without them making sure the property's title had no lien or cloud on the title. I think you have reached the point that you must have a REAL ESTATE and/or TAX attorney to help you in this matter. You apparently have not been talking to the correct attorney.

I get the distinct feeling that because you were trying to save money, it is not going to cost you lots more to untangle this whole mess. I do wish you well, Tricia.

Dick Dennis      dixiedee13@aol.com