I sold a store and am in the process of closing on it. My name is on the title and my parents cosigned the loan. I had my first loan on the store with one bank. I then refinanced with another bank. Now I found out that the original bank has a lien on my store for an old debt of my dad, the cosigner. My dad paid off this debt thirty years ago, but can the bank stop the closing of my store because my parents are the cosigners of it?
The property you are selling has one or more liens on it. You can't transfer ownership without satisfying the liens.
The question here is what is the source of the lien? If your parents were cosigned on the debt but had no interest in the store, its not certain how a lien would be placed on this. There has to be some ownership rights in the property to be attached. If your parents were also listed as owners of the property, than there is the connection.
The next question is about the debt. If the bank had a lien placed on the property without your approval, it was likely done through legal actions such as a judgment. You need to see where the debt came from and if you can provide evidence that it was in fact, paid in full.
You should act quickly on this. The attorney handling your sale should be able to assist. If you don't have an attorney, you should consider getting one. The lien will hinder your sale and that may cause you to lose this buyer, if the problem goes on too long.
BankingQuestions.com is a free service made possible by the generous support of our advertisers. Advertisers are not responsible for site content. Please help us keep BankingQuestions.com FREE by supporting our advertisers. When you see an ad for a product or service you may have an interest in, click through to learn more.
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
The property you are selling has one or more liens on it. You can't transfer ownership without satisfying the liens. 