hello all, I need your input on our current issue!
We finally got approval from the lenders on our short sale purchase…the week before our closing day…the title company informed us that the seller got $40k lien agains the property from his past L&I Lien (Washington State L&I). So everything is on hold and our lenders approval letter expired this week. So my question is: can the L&I lien be temporary remove to have the short sale moving toward? Negotiator can’t get discount from the lien…lenders don’t want to pay for the seller $40k personal lien problem…seller don’t have money to take care the lien…is there a solution for this issue? Can the L&I Lien be transfer into the seller social security instead the property? Seller also own another property…any suggestion? Should I move on to something else or still hope in this purchase? We like the house and don’t might the wait if there is solution for this.
Thanks
Since you mention a short sale negotiator…can they talk to the state about some kind of partial lien release or transfer of the lien to other assets? Because it’s a short sale and there is no equity, I’m thinking the state has probably been through this a few times. In this case, they might be able to attach the lien to something such as the seller’s other property.
As Kristine pointed out, you can ask.
What I do not see is any incentive for the lien holder to do anything other than wait it out. What happens if the property goes to foreclosure? Will the state lose anything? I suspect they have liens on all of the seller’s assets that they can lien. If that is the case, they would be losing nothing if the property is foreclosed upon or if they move the lien with no cash to them.
Once you understand the position of the lien holder you might be able to negotiate. A partial payment might be a step in the right direction. The lien holder has their claim reduced and they still have a lien on the other property or properties.
There is no reason the lien holder should just do the buyer a favor. They are not a charity.
Thanks for all your input…the Lien holder refused to discount or take payment…Listing agent is going to hire a RE attorney to handle the Lien issue…any idea how long would this take? Is it possible to have the Lien remove with RE attorney involve? Listing agent didn’t give me much detail beside “we’re working on it” response!
Thanks
[QUOTE=Jleecare;884001]Thanks for all your input…the Lien holder refused to discount or take payment…Listing agent is going to hire a RE attorney to handle the Lien issue…any idea how long would this take? Is it possible to have the Lien remove with RE attorney involve? Listing agent didn’t give me much detail beside “we’re working on it” response!
Thanks[/QUOTE]
Assuming the lien is legal, why would a court remove it?
Updated: RE attorney able to negotiate the balance from $40k to $30k…which is still a lot for us to come up from our own money…they’re not able to do the partial lien removal…I don’t mind to pay out of pocket for $10k…but $30k for the seller personal lien…nor me or the lender is going to take the hit…so we’re probably going to walk…after 4 months of waiting and $1000 lost for inspection and appaisal…now we have to start all over again…
Thanks for the update.
When you say you are going to wait, what are you waiting for? Is something supposed to happen that will change the deal from a dead end to a winner for you?
Update: I was waiting for the RE attorney to apply the L&I lien toward the seller other property…but unsuccessful…luckily we got the L&I lien discount from $30k to $24k…we just resubmitted addumden to lender (s) ask them to pay the $24k…now we’re waiting for their respond…hopefully they would get back to us with counter offer so we split the $24k with the lender (s).
Thanks