Pelican Parts Forums - A new Scam in the Area... a different approach

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Even if it was legit, the Title Company is liable. Check your title insurance provisions.

I purchased my first house when I was 20. A couple weeks after settlement I got a letter from the US attorney generals office notifying me they had placed a $250k lien against my house due to previous owner mortgage fraud. I panicked a bit and drove over to the closing by attorney (DE is an attorney state). Attorney said a lien filed after settlement isn’t valid but even if it was, that’s what title insurance is for and that’s why as a buyer you purchase it for you and the bank (the bank makes you but it’s optional for the buyer). I had placed a 20% down payment on the house so buyer title insurance was a good move. Attorney general’s office eventually sent another letter telling me the lien had been removed.

Previous owner / slumloard went to jail because to buy his houses, he said they would be owner occupied. Mortgage fraud caught up with him.

I’d like to see a copy of the “current judgment.” That language sounds like there was some legal action against you that you were (apparently) not made aware of at the time.
The whole thing sounds phony to me. I’d contact the company and feel them out. L,

Update Re: OP

They closed on the house almost 2 years ago. The house was a spec house, built by a custom home builder and already completed when they bought it, they had nothing to do with the actual building of the house. 2 others using the same builder have received this letter.

As someone pointed out the business on the letterhead is legit and specializes in this type work. Lady who posted the letter says they have contacted the builder who profess no knowledge this. The title is company is researching the issue. Next step will be attorney if necessary.

The wording in the letter is somewhat strange not to mention threatening so I would think this would not have been the first notification of an unpaid bill but who knows.

The homes in the development this house is in are all custom built and start at $400K or so and up to $1M... not the demographics of the usual scam target for something like I wouldn't think ?

The whole thing is kind of strange. Hopefully the lady will post the results of what happened with this ?

Quote:

Originally Posted by masraum (Post 10321273)

Hah! If they are actually targetting folks that live in River Oaks, I wouldn't think many will fall for it. They have money (and therefore, access to good lawyers). And I would think, if they are making good money, they are probably smarter than the average bear and unlikely to want to piss away money.

If I bought a house, and then someone sent me a bill for something that was done during the building of the house, I would be pretty unconcerned. I bought the house, I didn't build the house, you're talking to the wrong person.

If "Widgets of China Co" built the electronics of the gauge cluster of the 2018 NatCarCo Really-cool-car, and I bought one, then Widgets of China wouldn't contact me to pay the bill for 50,000 gauge clusters, they'd be contacting NatCarCo.

Happened to me when I bought my house back in early 2000...

Moved in, a few months later there is a Home Depot work group in my yard. Apparently the door I had the PO replace (it was rusted through, etc) before closing the PO cancelled teh check used to pay for both the door and installer. Home Depot actually sent a group to repossess a utility room door.

19 years later to almost the day, I still have the door and haven't heard crap from the HD folks.

Quote:

Originally Posted by 74-911 (Post 10322288)

With the above information^^, a clearer picture seems to be emerging.

Rereading the letter in the context of this new information makes me believe the letter is a cut-and-paste of a letter sent to the original builder as that is the one who would have contracted with the cabinet company and would have been aware of failure to pay notices and a judgement, if actually litigated. This is, possibly, an attempt to by-pass the builder who is not responding/paying and collecting a judgement from later purchasers who, through ignorance/fear, think they are liable. Naturally, the builder would deny any knowledge so I wouldn't trust his word on this matter.

The owners response, having the title insurance investigate and, if needed, an attorney, is the appropriate action, IMO.

River Oaks mission statement: "Our firm also specializes in construction litigation and lien acquisition, helping contractors settle disputes on projects that have not been paid out on."

Appears to be alleged non-payment by construction contractor and that should not be liability of purchaser. Title insurance/searches are supposed to prevent, or cover, this type of issue. If not a total scam of course.

Quote:

Originally Posted by Synchro Joe (Post 10322592)

The only problem I foresee is that the owner may not have an owner's title insurance policy. The typical policy is only for the lender's money should a problem arise. Any errors on the deed, improper search, or, in this case, claims against the house from a previous owner would only be covered by an owner's policy.