Legal Question in Real Estate Law in Texas
facing forelcosure from prior owner's lien
Hi there
We purchased a property last year and went thru the normal closing and title insurance process. However, now a lien holder has come forward and has started to foreclose on our house for a lien that belonged to the previous owner (the seller in our case) that they said was released due to a mistake. Can they foreclose my property to recover that lien even though I had nothing to do with it and when we bought the property the lien was showing as a release.
Please advise.
Thanks
1 Answer from Attorneys
Re: facing forelcosure from prior owner's lien
This is just the thing your title insurance should cover. Send copies of the foreclosure paperwork to the title company, TODAY, along with a letter stating you are making a claim under your policy and demanding that the title insurer protect your property from foreclosure.