This is a true story.  My husband and I are Realtors in SW Florida struggling with the current idiosynchrocies of this market.  The scenario went like this.

The transaction is a short sale.  The lender finally agreed to a price.  What went on before this is a subject for another blog.  The title company has completed the search.  Lo and behold what pops up?  There is a construction lien on the property for $20,000.  The owner never mentioned the lien and did not disclose it during or after the listing was signed. 

So, the lienholder is nowhere to be found.  He seems to think that the lien will be paid at closing, says the owner, and will show up at closing!  Who does he think will be willing to pay his lien?  When asked the owner claims that no construction was performed on his property. The owner says 'No'.

 WHOA!  Is this a fraudulent lien?  If so, how do you go about removing it?

The placing of a lien, so we've been told, is cut and dried.  The lienholder either gets paid all or a negotiated part of his lien or an attorney will have to be retained to SUE! 

'Sue?', the owner gasps.  I have no money.  That's why I am in the short sale situation and now I have to sue?  With a closing looming in the near future the owner is frantic about obtaining a solution without suing and without paying even a portion of this fraudulent lien.

We are Realtors.  Neither of us is an Attorney.  We cannot give legal advice to our client.   

The owner will have to hire an attorney to file a rebuttal.  Hopefully, this situation will be settled in time for the closing to take place.