Posted by John Merchant on January 27, 2006 at 18:48:19:
I’m not real sure just what you’re asking but I’ve had the experience that the title co. would not issue new title policy and clear title, unless and until ALL liens on the house have been paid.
The TX H exemption has been a rock in the road for lots of years, and generally a Judgment or D/T lien on a house, whether home or not, is going to have to be paid at closing to satisfy escrow and title.
judgement, Texas style - Posted by dealmaker
Posted by dealmaker on January 24, 2006 at 17:53:21:
I got a weird one this evening and my lawyer is out of pocket until late tomorrow. Here’s the deal. 7 years ago we sold and seller financed a place, we owned it free and clear.
The buyer found another place they liked, and the seller there was going to seller finance them too.
The guys we sold to have a buyer and closing was set for Feb. 6th. Today we found out that the guys we’re currently financing have a judgement against them for $18K for a car they let go back (yes, they’re morons!).
These guys are willing to deed the house back to us for no cash out of my pocket, (their buyer has $20K cash to put down), and let us sell to their buyer. We could end up with another mortgage in place for $97K, $20K in our pockets.
My (somewhat) educted guess is that the judgement for the repo’d car isn’t against the guys homestead. I would have to get the buyer to take it with no title policy though.
Any help guys?
dealmaker
Re: Are you sure? - Posted by Bud Branstetter
Posted by Bud Branstetter on January 26, 2006 at 17:30:15:
Are you sure they would be okay in Texas. My understanding of Texas code on this is that if the one homestead owner sells to another then the lien must be lifted. They seem to indicate that they are not going to homestead the property but again resell. If that were the case my attorney had indicated that the lien would attach when they took title and be enforceable against the new homestead owner. If the existing owner sold to a new homestead owner then the lien would not be enforceable.
Re: judgement, Texas style - Posted by John Merchant
Posted by John Merchant on January 25, 2006 at 10:21:21:
As long as you fully disclose all your knowledge
of the title situation to your new buyer, and then let him buy it from you “as is”, you’d be OK legally.
Personally, I’d have a TX lawyer draft the docs on your resale so as to fully protect you from future action by buyer against you.
Are you sure - Posted by Bud Branstetter
Posted by Bud Branstetter on January 26, 2006 at 17:32:21:
Are you sure they would be okay in Texas. My understanding of Texas code on this is that if the one homestead owner sells to another then the lien must be lifted. They seem to indicate that they are not going to homestead the property but again resell. If that were the case my attorney had indicated that the lien would attach when they took title and be enforceable against the new homestead owner. If the existing owner sold to a new homestead owner then the lien would not be enforceable.