Been this transaction for 6 months. Got the seller's 1st lender approval on Feb. and 2nd lender approval on March. Loan was ready funding to close with escrow on middle of April. Just right before the close, Title reported a 3rd lien with huge amount from the seller's lawsuit. The Judgment was entered on last Nov. (before I signed the purchase contract), but the lien was recorded on middle of March. Title contacted the lien holder but got no luck. The deal was killed because the 1st lender could not extend the approval any more. Here are my questions: In CA, is there any way to remove this lien (other than pay)? Do I have a case to suit the seller for not disclosing the lawsuit, the transaction cost not me both fee and the cost of opportunity (housing going up a lot during this period)
You cannot remove the lien. The seller may be able to through a bankruptcy assuming he qualifies.
As for your lost costs -- they are within the range of a small claims court. But consider: If the seller cannot pay his liens or judgments, how will you be able to collect?
Consider this a marginally expensive learning lesson. Cut your losses and move on.
There is no way to remove the lien aside from a BK.
Maryam Atighechi is a family law, real estate and civil litigation attorney in Sherman Oaks, CA. 310-498-1057. Please be advised that although Ms. Atighechi is an attorney, the comments posted does not constitute legal advice. You should not rely on any advice or suggestions written and seek outside, independent counsel. An attorney-client relationship has not formed by reading the post.
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