Legal Question in Real Estate Law in Massachusetts
we bought a property at forclosure sale, the seller(mortg co) wanted more than the agreed price, they thought we bought the property for a quick resale. We agreed to a lien for 20,000.00 if we sold the property for more than 400,000.00. It is now 10 years later, we put approximately 200000.00 into the property and now want to sell it for 550000.00. We refinanced in 2006 and the title company did not get a subordination agreement from the orig mort co. who is responsible if they find out we sold the property? We previously refinance in 2004 and that title co made them subordinate the loan at that time
1 Answer from Attorneys
Without reading the lien, it is impossible to tell you if it is still valid. However, a subordination agreement is not a waiver of a lien, it is merely an agreement to subordinate the lien. If you sell the home and the lien is valid, you are required to pay the lien.
However, if the you purchased the home at a foreclosure auction, the lender was not entitled to seek additional funds post auction. Apart from the lien, you should have an agreement which states under what circumstances the lien is still enforceable. I suggest you consult an attorney as to the validity of the lien.
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