Legal Question in Real Estate Law in Michigan

Re: who owns the home

From the facts that you presented, I would say that you own the home subject to the rights of the lienholder.

You would have a cause of action (lawsuit) against the seller which could result in an order to pay the lienholder and see that the lien is released, or, a recission of the sale, and/or money damages.

If you were represented by a buyer's agent, or attorney in the transaction, it is possible, but not as likely, that you would have a cause of action against them if they should have discovered the lien or at least advised you of the possibility and methods to check on liens, or insure against them.

If you had title insurance issued, you will want to inform your title insurance company immediately. They probably have a duty to defend against this lien unless it was listed as an exception on your title insurance policy.

You should also make sure that the lien is valid and was properly filed to preserve the alleged lienholder's rights. If it wasn't handled properly by their side, you can sue to have it removed.