HELP - Bogus Lien Issue on Off Market Purchase

[Barrett Determan]

Got a signed purchase agreement on an off market property this spring. The seller requested several months so that some of the family members currently living there could get out of school and find a new place to live. They had previously received a lower offer but didn’t take it and when I offered more the contract was signed.

When they finally told me they were ready to move forward, I sent the necessary info to my bank to get the process started for a rehab loan. During this process, the buyer who made the previous offer came back and told them they would pay cash. The seller agreed to sell to him. When they informed me, I told them I would not let them out of my contract, and that mine was first. They agreed and told the other buyer that we were moving forward.

Now we are almost ready to set a closing date, but the title company discovered that this individual has filed a lien. Is there an easy way to remedy this?

TIA

[Jay Hinrichs]

well few things.

it does sound like this other buyer has recorded an interest in the property to keep the seller from selling.

the question is was the seller really out of contract..  if so this is slander of title and the person who did this can be in some serious legal trouble. and usually a well written letter from the sellers attorney will get this dropped and you can proceed.

but if the seller took your offer before letting the other expire.. then there could be a case made that this first offer has some standing.