Imagine that you have found your dream home. Your offer is accepted, you close the deal, you move in. Then, just as you’ve started to make the house your own, the mail carrier delivers news that turns your world upside down: There was a lien against a previous owner, and now it’s been passed on to you.
That’s exactly what happened to Lori Moore and her husband.
“We had barely gotten everything settled in the house when two weeks later we received a letter from an attorney about a pre-existing lien on the house against the prior owner that now carried over to us as the new owners,” says the Louisville, KY, resident. The lien had been missed during the title search process because, Moore says, the county clerk had filed it in a way that made it hard to find.
At first, Moore says, they weren’t too concerned. “We remembered paying for title insurance, but our Realtor® explained that policy only covered the lending institution for any title problems, not us as the homeowners.”