We are trying to buy a house. Everything has gone through and we were scheduled to close this week. Then the title company informed us that ...

Question

We are trying to buy a house. Everything has gone through and we were scheduled to close this week. Then the title company informed us that the Seller has a second lien on the house. The problem is that no one can find the loan. It originally belonged to a bank in Texas. That bank was bought in 2008 by Wells Fargo but they can't find any record of this loan ever having come to them. What can be done in this situation? Should we walk away? The Seller is asking if we want to lease the house until this gets settled but we are reluctant to do that especially for the full amount of his loan payments because it gives him no incentive to hurry this thing. Plus we will be out the moving expenses, etc. and be extremely inconvenienced if we have to move again.

Answer

How much is the second lien? Ask the seller to reduce the price by all or part of the amount.

Remember that it is currently a BUYER'S market.