ANSWERS: 4
  • Because someone else (usually another bank) has a security interest in the property. For example, suppose you buy a house and pull two loans (one for the down, and the other for the balance). Now suppose that bank 2 forecloses on the property without including bank 1 in the proceedings. In this case, bank 1’s security interest in the property still exists. This is actually somewhat common. The way to rectify it to buy the house at its value minus the lien amount, and then pay off the lien balance.
  • Ask an attorney. Anything goes in the housing market today.
  • When the house was foreclosed the lien was already there -- probably mechanics lien. If your contract with the bank says that the lien will be removed prior to closing then you can hold the bank to that. Be sure not to close without proof that the lien has been satisfied.
  • Get yourself a Real Estate ATTORNEY ASAP ..to protect you and YOUR interest. +5

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