What legal recourse does an individual have when a mortgage company refuses to pay off existing liens after all papers signed?

Was this transaction a refinance? Need to know more information so we can all assist. I am an Illinois lender in Schaumburg and happy to offer any advice as to what has gone wrong with your transaction. barb.lanis@1amllc.com 1stAdvantage Mortgage

So much info is missing it's hard to answer your question.. In General, when you purchase or refinance a home, the lender, doing their due diligence, will get a title report which will show all liens attached to that property.. And when they calculate your new loan, they will take into consideration those liens which are due to be paid, and those which will be subordinated... Part of your closing costs, are fee's for title insurance. Title insurance is a policy you pay for that will pay or remove liens that might come up in the future that were never discovered in their original search. All this is moot if the reason the lender isn't paying the liens is because they never funded the loan.. for refi's, you sign the papers, and then there's the 3 day waiting period, and then they can fund the loan... so if your within your 3 day waiting period, it could be just a matter of waiting it out.. Keep in mind that the lender can cancel the loan at any time before the new deed is recorded.. Your scenario is... well, unknown.. we would need more details to properly answer your question... I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Usually if it's past the 3 day rescission they are required to fund the loan per your signed agreement. If you continue to have issues contact a financial attorney.

This depends on if the liens were discovered in the prelim prior to you finalizing your documents. The mortgage company can not fund a loan that has a clouded title due to a lien on the property. It is the title companies responsibility to ensure that liens have been cleared. If this is a purchase it is the sellers responsibility to clear the liens either with their own funds or the proceeds of the sale.

As John said, it depends on the type of liens and, more importantly, when they were discovered if not disclosed. Can you provide more information on this? As for recourse, some states have mortgage funding laws requiring loans to fund within X number of days of closing. These laws usually pertain to the purchase of primary residences however.

It really depends on the circumstances but you will need to speak with an attorney, sooner than later.

Interesting question. I assume this is a refinance. When you refinance, there is a three day waiting period until the loan is real, at which time any existing loans are paid off. Technically only you can cancel the loan during that time. Not the lender. Something is weird. We need more information. What are they telling you?

If you are talking about liens that were discovered as part of the title search the bank would REQUIRE them to be paid off at funding. If they were discovered after the closing but befoore funding they would still require them to be paid of or they won't fund the loan. We really need more details about the nature of the disputed lien and the transaction.

This doesn't make sense - you can't get a mortgage is there's an existing lien against the Title, unless the lien is subordinated. And it's not the Mortgage Company that determines if the lien gets paid - it's the Escrow Company.

More information is needed to answer your question correctly, Something is missing.